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CHINA  AT  THE  CONFERENCE 

A  REPORT 


BY 

WESTEL  W.  WILLOUGHBY 

Professor  of  Political  Science  at  the  Johns  Hopkins  University; 

Formerly  Ivcgal  Adviser  to  the  Chinese  Republic; 

Technical  Expert  to  the  Chinese  Delegation  to  the  Conference 

on  Limitation  of  Armament,  at  Washington,  D.  C. ; 

Author  of  "Foreign  Rights  and  Interests  in  China" 


Baltimore 

THE  JOHNS  HOPKINS  PRESS 

1922 


Copyright  1922  by 
The  Johns  Hopkins  Press 


Z^t  Boti  QgCafttmore  (Prees 

RALTIMOiUt,    MD.,   U.   S.    A. 


LinRARY 

IliNIVEItSin-  OF  CALIFORNTA 

SAiNTA  BARHAllA 


PREFACE 


It  is  a  remarkable  fact  that,  with  the  exception  of  a 
part  of  one  session  which  was  devoted  to  the  situation 
in  Siberia,  the  entire  work  of  the  Conference  at  Wash- 
ington, so  far  as  it  dealt  with  political  questions  in  the 
Pacific  and  Far  East,  was  concerned  with  the  affairs 
of  China.^  An  account,  therefore,  of  China  at  the 
Conference  will  necessarily  cover  almost  the  entire 
proceedings  of  that  body  upon  its  purely  political  side 
as  distinguished  from  its  deliberations  and  discussions 
with  reference  to  the  reduction  of  existing,  and  the 
limitation  of  future,  armaments. 

The  present  work  is  in  the  nature  of  a  report  upon 
the  work  of  the  Chinese  Delegation  at  Washington, 
but,  not  being  official  in  character,  there  will  be  an 
opportunity  for  the  author  to  speak,  upon  some  points 
at  least,  rather  more  fully  and  frankly  than  it  would 
be  appropriate  and  expedient  for  the  official  represen- 
tatives of  the  Chinese  Government  to  do.  It  is,  how- 
ever, proper  to  say  that  the  author  served  as  Technical 
Expert  to  the  Chinese  Delegation  throughout  its  work 
at  Washington ;  that,  in  that  capacity,  he  had  access 
to  all  the  records  of  the  Conference  so  far  as  they 
related  to  China ;  that  he  was  kept  currently  informed 
of  the  proceedings  of  the  Conference  and  of  its  com- 

*  The  disciuBioD,  or  rather  the  statementa  made,  in  the  conference  relat- 
ing to  Siberia,  are  given  in  the  Appendix. 

iii 


iv  PKEFACE 

mittees  and  subcommittees ;  and  that  the  Chinese  Dele- 
gates have  made  available  to  him  their  own  confi- 
dential records,  so  that  he  feels  justified  in  saying 
that,  so  far  as  a  knowledge  of  the  facts  is  concerned, 
he  is  in  a  position  to  give  an  adequate  and  accurate 
account  of  China's  case  at  the  Conference.  What- 
ever opinions  he  may  state  as  to  the  wisdom  of  the 
actions  taken,  whether  upon  the  part  of  the  Chinese 
Delegation  or  of  the  representatives  of  the  other 
Powers,  or  whatever  estimates  he  may  express  as  to 
the  general  success  or  failure  of  the  Conference  in 
achieving  the  work  for  which  it  was  convened,  will 
necessarily  be  his  own,  and  their  value  will  be  deter- 
mined by  the  intelligence  with  which  they  have  been 
formed. 

Because  it  is  hoped  that  this  volume  will  serve  as  an 
authentic  report  of  the  work  of  the  Conference,  so  far 
as  China  was  concerned,  the  method  will  be  followed 
of  reproducing  not  only  the  texts  of  the  final  agree- 
ments reached,  but  also  the  carefully  formulated 
statements  Which,  from  time  to  time,  the  Chinese 
Delegation  made  in  order  that  it  might  not  later  be 
argued  that,  by  silence,  the  representatives  of  China 
had  given  tacit  acquiescence  to  the  various  treaty 
limitations  upon,  or  violations  of,  the  sovereignty, 
territorial  integrity  and  administrative  autonomy  of 
China,  the  freedom  or  relief  from  which  they  were  not 
able  to  obtain.  And,  in  this  connection,  the  author 
ventures  to  say  that  the  reader  of  this  volume  wiU 
almost  inevitably  be  impressed  not  only  by  the  vigor 
with  which  the  Chinese  Delegates  presented  China's 
case  to  the  Conference,  but  by  the  intelligent  and 


PREFACE  V 

scrupulous  care  which  they  took  to  avoid  any  admis- 
sions of  principles,  or  unnecessary  commitments  upon 
the  part  of  China  which  would  unduly  hinder  her 
future  freedom  of  action,  or  place  obstacles  in  the  way 
of  her  securing,  at  some  later  and  more  propitious 
time,  action  upon  the  part  of  the  Powers  which  it  was 
found  impossible  to  obtain  at  Washington. 

In  result,  it  is  hoped  that  this  volume  will  be  found 
to  be  a  convenient  supplement  to  the  author's  Foreign 
Rights  and  Interests  in  China,  published  in  1920, 
bringing  to  date,  as  it  will,  many  of  the  statements  of 
that  work. 


CONTENTS 


Preface  iii 

CHAPTER  I 
The  Convening  of  the  Conference 

PAGE 

Equality  of  the  Powers 1 

Unanimity  of  Action  Required 2 

Preliminary  Correspondence  3 

Japan's  Hesitancy 5 

The  Formal  Invitation  to  the  Principal  Allied  and  Associated 

Powers    7 

The  Invitation  to  China 9 

Belgium,  Netherlands  and  Portugal  Invited 11 

The  Delegates 11 

CHAPTER  II 

The  Need  for  the  Discussion  by  the  Conference  of  Pacific 
AND  Far  Eastern  Questions 

China's  Weakness  and  Japan's  Ambitions 15 

Interests  of  Western  Powers 17 

CHAPTER  III 

The  Organization  and  Procedure  of  the  Conference 

Plenary  Sessions 19 

Committees  of  the  Whole  and  Sub-Committees 19 

Procedure 20 

Agenda 25 

vii 


viii  CONTENTS 

CHAPTER  IV 

China's  Programme  p^qb 

China's  Hopes 27 

China's  Fears   30 

China's  Ten  Points 32 

CHAPTER  V 

The  Root  Resolutions 

General  Discussion  37 

China  Defined 39 

Root  Resolutions 40 

CHAPTER  VI 

China's  Territorial  and  Administrative  Integrity 

Sovereignty    45 

Territorial  Integrity 48 

Administrative  Integrity  51 

China's  Rights  as  a  Neutral 53 

CHAPTER  VII 

Tariff  Autonomy 

Chinese  Statement   55 

Discussion    68 

Sub-Committee  Discussions 60 

Japanese  Statement   64 

Discussion    65 

Draft  Agreement 67 

Land  Frontier  Duties   69 

Discussion  in  Committee  of  the  Whole :  Statement  by  Senator 

Underwood 73 

Chinese  Statement   75 


CONTENTS  ix 

PAGE 

Drafting  Committee :   Report  from 80 

Discussion  as  to  Russia 82 

Grand  Duchy  of  Luxemburg 83 

Finland  and  Poland 83 

Non-Treaty  Powers 84 

Draft  of  Treaty 86 

Senator  Underwood's  View  as  to  Power  of  China  to  Denounce 

Tariff  Treaties 93 

Maintenance  of  Existing  Customs  Administration 94 

Banks  for  Deposit  of  Customs  Receipts 95 

Chinese  Statements 103 

CHAPTER  VIII 

Resolution  of  the  Powers  other  than  China  Regarding 
Armed  Forces  in  China 

Proposed  Resolution 108 

Chinese  Statement  109 

Statement  by  Sir  Robert  Borden 110 

Resolution  Adopted 112 

CHAPTER  IX 

Extraterritoriality 

Chinese  Statement 114 

Resolutions  Adopted 118 

CHAPTER  X 

Foreign  Post  Offices  in  China 

Chinese  Statement  121 

Discussion    129 

Resolutions 131 

Japanese  Statement 132 

Chinese  Statement 133 


X  CONTENTS 

CHAPTER  XI 

Foreign  Tboops  and  Police  in  China  p^^j. 

Chinese  Statement 136 

Japanese  Statement  1^^ 

Chinese  Rejoinder •  •  •  1^^ 

Japanese  Reply 1^^ 

Commission  of  Inquiry  Proposed 151 

Chinese  Objection 153 

Resolution  Adopted 153 

Chinese  Statement 154 


CHAPTER  XII 

Wireless  and  Other  Electrical  Communications 
Installations  in  China 

Chinese  Statement 157 

Draft  Resolution  by  Mr.  Root 159 

Discussion    160 

In  the  Drafting  Committee 161 

Resolution  of  December  7 162 

Viviani  Resolution  164 

Chinese  Statement 166 

Revised  Root  Resolution 168 

Discussion    169 

Resolution  of  December  7  Finally  Approved 172 


CHAPTER  XIII 

Spheres  of  Interest 

Chinese  Statement  174 

Status  of  Question  175 

Statements  in  the  Conference 177 

Resolution  Adopted 179 


CONTENTS  xi 
CHAPTER  XIV 

Leased  Areas  p^^^ 

Kwangchow-wan    183 

Kiax)chow  and  Kwautung  District 185 

Kowloon 186 

Weihaiwei 188 

Chinese  Statement  190 

Weihaiwei 191 

Kwangchow-wan   192 


CHAPTER  XV 

Japan's  Claim  to  "  Special  Interests  "  in  China 

Lansing-Ishii  Agreement 193 

Consortium    194 

Manchuria   197 

Mining  Code  202 


CHAPTER  XVI 

The  Open  Doob 

Open  Door  Defined 206 

Board  of  Reference 215 

Chinese  Statement 218 


CHAPTER  XVII 

Chinese  Railways  and  the  Open  Door 

Unification  of  Railways 222 

The  Open  Door  and  the  Chinese  Railways 223 


xii  CONTENTS 

CHAPTER  XVIII 
The  Chinese  Eastern  Railway 

PAGE 

Report  of  Technical  Committee 227 

Resolution  Adopted 230 

CHAPTER  XIX 

Inter-Power  Agreements  Relating  to  China 

Chinese  Statement  235 

Discussion 238 

Resolution  Adopted 240 

CHAPTER  XX 

Arms  Embargo 

Draft  Resolution 244 

Discussion    244 

Amended  Resolution 246 

Resolution  Withdrawn 247 

CHAPTER  XXI 

The  Twbntt-One  Demane>s  :  Treaties  and  Agreements  of 
May  25,  1915 

Japanese  Statement 250 

Chinese  Reply  253 

Statement  of  the  United  States 256 

CHAPTER  XXII 

China's  Commitments 

Chinese  Proposals 261 

Discussion    263 


CONTENTS  xiii 

PAGE 

Draft  Resolution 264 

Discussion    265 

Resolutions  Adopted 271 

Commitments  without  Time  Limits 273 

Construction  of  Commitments 274 

China's  Ninth  and  Tenth  Points 274 


CHAPTER  XXIII 

Shantung 

Reasons  for  Resorting  to  the  Conversations 280 

Scope  of  the  Conversations 284 

The  Status  of  the  Shantimg  Question 285 

Correspondence  Between  China  and  Japan 291 

Japanese  Note  of  September  7,  1921 293 

China's  Answer 294 

Reasons  why  the  Other  Powers  were  Unwilling  to  have  the 

Shantung  Question  brought  before  the  Conference 297 

Conversations  Agreed  Upon 299 

Persons  Participating  in  the  Conversations 300 

Restoration  of  Kiaochow 301 

Customs    302 

Public  Properties 303 

Vested  Rights 306 

Salt 306 

Mines    307 

Withdrawal  of  Japanese  Troops 308 

Wireless  Stations 308 

Submarine  Cables 308 

Renimciation  by  Japan  of  Preferential  Rights  in  Shantung.  .  309 

The  Shantung  Railway 309 

The  Valuation  of  the  Railway  and  Appurtenant  Properties.  . .  310 

Improvements  and  Additions 311 

Joint  Railway  Commission 313 

Mode  of  Payment  and  Conditions  to  be  Attached  Thereto. ...  314 


xir  CONTENTS 

PAGE 

Japanese  Propose  Loan  by  Japanese  Capitalists  and  Employ- 
ment of  Japanese  as  Chief  Engineer,  Chief  Accountant, 

and  Traffic  Manager 315 

The  Issue  Drawn 321 

Informal  Conversations  and  Interviews 322 

Agreement  Reached 323 

Understandings  Recorded  in  the  Minutes 323 

Joint  Commission 32G 

Results  of  the   Conversations   Communicated  to   Secretary 

Hughes  and  Mr.  Balfour 326 

An  Estimate  of  the  Merits  of  the  Shantung  Agreement 327 

CHAPTER  XXIV 

Results 

No  New  Bonds  upon  China 336 

Specific  Results  gained  by  China 339 

Principles  and  Policies  Relating  to  China 342 

Anglo-Japanese  Alliance  344 

Siberia   349 

Has  a  Fimdamental  Change  of  Policy  on  the  Part  of  the 

Powers  been  Effected  ? 355 

The  Future  357 


APPENDICES 

Appendix  I:  Treaties 

A  Treaty  between  the  United  States  of  America,  The  British 
Empire,  France,  and  Japan,  Signed  December  13,  1921, 
Relating  to  their  Insular  Possessions  and  Insular  Do- 
minions in  the  Pacific  Ocean 363 

Declaration  Accompanying  the  Above  Four-Power  Treaty.  . .     366 
A  Treaty  between  the  Same  Four  Powers,  Supplementary  to 

the  Above,  Signed  February  6,  1922 367 


CONTENTS  XV 

PAGE 

A  Treaty  between  all  Nine  Powers  relating  to  Principles  and 

Policies  to  be  followed  in  matters  concerning  China. . . .     368 

A  Treaty  between  the  Nine  Powers  relating  to  Chinese  Cus- 
toms Tariff   374 

Appendix  II:  Resolutions 

Resolution  Regarding  a  Board  of  Reference  for  Far  Eastern 

Question 381 

Resolution  Regarding  Extra-territoriality  in  China 381 

Resolution  Regarding  Foreign  Postal  Agencies  in  China 383 

Resolution  Regarding  Armed  Forces  in  China 384 

Resolution  Regarding  Radio  Stations  in  China  and  Accom- 
panying Declarations  385 

Resolution  Regarding  Unification  of  Railways  in  China  and 

Accompanying  Declaration  by  China 387 

Resolution  Regarding  the   Reduction   of   Chinese   Military 

Forces 388 

Resolution  Regarding  Existing  Commitments  of  China  or  with 

Respect  to  China 389 

Resolution  Regarding  the  Chinese  Eastern  Railway,  Approved 

by  All  the  Powers  Including  China 390 

Resolution  Regarding  the  Chinese  Eastern  Railway,  Approved 

by  AU  the  Powers  other  than  China 391 

Appendix  III:   Treatt  fob  the  Settlement  of  Outstanding 
Questions  Relative  to  Shantung 

Section         I.     Restoration  of  the  Former  German  Leased 

Territory  of  Kiaochow 392 

Transfer  of  Public  Properties 393 

Withdrawal  of  Japanese  Troops 394 

Maritime  Customs  at  Tsingtao 394 

Tsingtao-Tsinanfu  Railway 395 

Extensions  of  the  Tsingtao-Tsinanfu  Railway  396 

Mines    397 

Opening  of  the  Former  German  Ijeased  Ter- 
ritory of  Kiaochow 397 


Section 

II. 

Section 

III. 

Section 

IV. 

Section 

V. 

Section 

VI. 

Section 

VII. 

Section  VIII. 

xvi  CONTENTS 

PAGE 

Section      IX.     Salt  Industry 398 

Section        X.     Submarine  Cables 398 

Section      XL    Wireless  Stations   398 

Renunciation  of  Preferential  Rights 399 

Transfer  of  Public  Properties 399 

Maritime  Customs  at  Tsingtao 400 

Tsingtao-Tsinanfu  Railway 400 

Chefoo-Weihsien  Railway   401 

Opening  of  the  Former  German  Leased  Territory  of  Kiaochow  401 

Appendix  IV :  Statements  in  the  Conference  Regarding 

Siberia 

Japanese  Statement  401 

Statement  of  the  United  States 406 

French  Statement 411 

Appendix  V :  China's  Delegation 

Delegates    412 

Superior  Advisers 412 

Secretary  General 412 

Assistant  Secretary  General 412 

Advisers  412 

Counselors   412 

Technical  Delegates   413 

Directors  of  Departments 413 

Assistant  Director  of  Departments 413 

Secretaries   413 

Attaches  413 

Translators 414 

Clerks 414 

Index  415 


CHAPTER  I 

The  Convening  of  the  Confeeence 


Equality  of  the  Powers.  As  is  well  known  the  Wash- 
ington Conference  was  called  in  order  that  two  dis- 
tinct, but  related,  purposes  might  be  achieved.  The 
first  was  that  the  five  Powers,  the  United  States  of 
America,  the  British  Empire,  France,  Italy  and 
Japan — known  during  the  World  War  as  the  Princi- 
pal Allied  and  Associated  Powers — might  take  com- 
mon action  with  regard  to  a  reduction  of  existing  and 
a  limitation  upon  future  armaments.  The  second 
purpose  was  that  existing  political  conditions  in  the 
Pacific  and  Far  East  might  be  so  modified  that,  so  far 
as  possible,  possibilities  or  probabilities  of  interna- 
tional controversies  or  even  of  war  would  be  removed. 
In  order  that  this  second  end  might  be  obtained,  the 
Governments  of  Belgium,  China,  the  Netherlands  and 
Portugal  were  invited  to  send  representatives  to  the 
Conference  who  were  to  participate  in  its  discussions 
and  determinations  insofar  as  they  might  relate  to 
Pacific  and  Far  Eastern  political  questions.  Thus, 
while  not  invited  to  participate  in  the  work  of  the 
Conference  so  far  as  matters  of  armament  might  be 
dealt  with,  the  representatives  of  these  four  last  named 
Powers  took  their  seats  in  the  Conference  upon  a  basis 
of  full  equalitv  with  the  representatives  of  the  five 
2  ^  1 


2  CHINA  AT  THE  CONFERENCE 

Principal  Allied  and  Associated  Powers  so  far  as 
Pacific  and  Far  Eastern  questions  were  concerned/ 

Unanimity  of  Action  Required.  With  regard  gener- 
ally to  the  work  of  the  Conference  it  is  to  be  remem- 
bered that  it  was  a  meeting  of  sovereign  Powers,  each 
of  which,  by  attending  it,  conceded  no  legal  or  even 
moral  right  upon  the  part  of  the  other  Powers  to  con- 
trol its  actions  or  politics  by  the  determinations  which 
they  might  arrive  at.  Therefore  it  was  that  no  defi- 
nite or  treaty  results  could  be  expected  from  the  Con- 
ference save  such  as  might  command  the  unanimous 
consent  of  the  Powers  concerned.  In  other  words,  as 
soon  as  the  fact  developed  during  the  discussions  in 
the  Conference  or  outside  of  it  in  the  informal  conver- 
sations or  communications  between  the  several  dele- 
gations, that  unshakable  objection  to  a  proposition 
by  even  a  single  Power  would  be  made,  that  proposi- 
tion was  almost  always  dropped,  for  its  formal  pre- 
sentation to  the  Conference  by  the  Powers  especially 
interested  could  serve  no  other  purpose  than  to  place 
those  Powers  clearly  upon  record  as  to  their  views  in 
the  premises,  and  to  obtain  for  them  such  support  in 
the  public  opinion  of  the  world  as  they  might  merit. 
These  facts  are  to  be  constantly  borne  in  mind  in 
passing  judgment  either  upon  the  work  of  the  Con- 
ference as  a  whole  or  upon  the  wisdom  of  the  actions 
of  particular  Delegations.  No  argument  is  needed  to 
show  that,  as  a  general  proposition,  a  Delegation 
would  suffer  a  disadvantage  by  bringing  forward  a 

*  There  ia  reason  for  saying  that  China  would  not  have  been  willing  to 
attend  the  Conference  except  upon  this  basis  of  equality,  and  that  she 
received  assurance  that  she  would  enjoy  this  status. 


CONVENING  OF  CONFEKENCE  3 

proposal  which  it  was  known  in  advance  would  not  be 
favorably  acted  upon  by  the  Conference,  for,  by  fail- 
ure to  obtain  action,  the  existing  status  quo  would  be 
rendered  all  the  more  fixed.  Such  being  the  case,  a 
Delegation  concerned  would  be  justified  in  asking  of 
the  Conference  action  which  it  knew  would  be  refused 
only  if  it  were  convinced  that  the  disadvantage  result- 
ing from  such  refusal  would  be  more  than  compen- 
sated for  by  the  moral  advantage  of  publicly  assert- 
ing upon  its  part  a  policy  that  it  deemed  just  and  by 
thus,  as  it  were,  bringing  before  the  bar  of  the  con- 
science of  the  world  those  nations  that  would  oppose 
it,  or  whose  past  actions  had  not  been  consistent  with 
it.  In  two  conspicuous  instances  the  Powers  con- 
cerned deemed  it  thus  desirable  to  bring  before  the 
Conference  matters  upon  which  it  was  practically 
known  that  no  favorable  action  could  be  obtained. 
The  United  States  Delegation  presented  a  severe  in- 
dictment of  Japan's  policies  in  Eastern  Siberia,  and 
the  Chinese  Delegation  brought  forward  the  question 
of  the  fundamental  validity  of  the  Sino-Japanese 
Treaties  and  Agreements  of  May  25,  1915 — those 
resulting  from  Japan's  **  Twenty-One  Demands  " 
upon  China. 

Preliminary  Correspondence.  For  the  purposes  of 
this  volume  it  is  not  necessary  to  speculate  as  to  the 
more  obscure  causes  which  led  to  the  convening  of  the 
Conference  at  Washington,  nor  to  consider  the  diplo- 
matic correspondence  which  preceded  the  issuance  by 
the  American  President  of  the  formal  invitation  to 
the  Powers  to  participate  in  its  deliberations  and 
decisions.     It  is  sufficient  to  say  that,  as  was  but 


4  CHINA  AT  THE  CONFERENCE 

proper,  the  American  Government  did  not  send  its 
final  and  formal  invitation  until  it  had  obtained  assur- 
ance from  the  Powers  to  be  addressed  that  they  would 
give  to  it  a  favorable  reply.  All  of  the  Powers  ad- 
dressed, with  the  exception  of  Japan,  as  will  pres- 
ently appear,  gave  full  and  prompt  approval  to  the 
American  proposal. 

In  an  official  statement  given  out  July  10,  1921,  by 
the  American  Department  of  State,  it  was  said : 

The  President,  in  view  of  the  far-reaching  importance  of  the 
question  of  limitation  of  armament,  has  approached  with  informal 
but  definite  inquiries  the  group  of  Powers  heretofore  known  as  the 
Principal  Allied  and  Associated  Powers,  that  is.  Great  Britain, 
France,  Italy  and  Japan,  to  ascertain  whether  it  would  be  agreeable 
to  them  to  take  part  in  a  Conference  on  this  subject,  to  be  held  in 
Washington  at  a  time  to  be  mutually  agreed  upon.  If  the  proposal 
is  found  to  be  acceptable,  formal  invitations  for  such  a  Conference 
will  be  issued. 

It  is  manifest  that  the  question  of  limitation  of  armament  has  a 
close  relation  to  Pacific  and  Far  Eastern  problems,  and  the  Presi- 
dent has  suggested  that  the  Powers  especially  interested  in  these 
problems  should  undertake  in  connection  with  this  Conference  the 
consideration  of  all  matters  bearing  upon  their  solution  with  a  view 
to  reaching  a  common  understanding  with  respect  to  principles  and 
policies  in  the  Far  East.  This  has  been  communicated  to  the  Powers 
concerned  and  China  has  also  been  invited  to  take  part  in  the  dis- 
cussion relating  to  Far  Eastern  problems.' 

*  In  connection  with  this  statement  it  is  of  interest  to  note  the  following 
statements  made  in  the  British  House  of  Commons  by  the  Prime  Minister 
Mr.  Lloyd  George: 

On  July  7  he  was  asked:  "Whether  at  any  time  the  suggestion  of  a 
Pan- Asiatic  Conference  has  been  brought  to  his  notice;  and  whether  if 
this  is  not  the  case  he  will  consider  the  desirability  of  issuing  the  neces- 
sary invitations  to  the  United  States,  Japan,  and  China  with  the  object  of 
terminating  the  controversies  which  threaten  the  peace  of  the  Far  East 


CONTENINQ  OF  CONFERENCE  5 

Japan's  Hesitancy.  That  the  Japanese  Government 
was  not  willing  to  give  immediate  and  mireserved 
approval  to  the  American  project  appeared  when  a 
memorandum  was  made  public  on  July  23,  which  the 
American  Charge  d 'Affaires  at  Tokyo  had  handed  to 
the  Japanese  Government.    In  this  memorandum  the 

and  the  trade  of  this  country."  Questions  were  also  asked  as  to  the  status 
of  the  Anglo-Japanese  Alliance. 

To  these  queries  the  Prime  Minister  replied  that  he  hoped  to  be  able  to 
make  a  statement  on  the  following  Monday,  July  11.  "It  depends,"  he 
said,  "upon  whether  replies  are  received  from  the  United  States,  Japan, 
and  China." 

On  July  11  the  Prime  Minister  said  (in  part) : 

"  I  am  very  glad  to  be  able  to  inform  the  House  today  that  the  views 
of  the  government  of  the  United  States  reached  me  last  night,  and  are 
extremely  satisfactory.  The  Chinese  Government  is  also  favorable.  We 
have  not  yet  had  a  formal  reply  from  the  government  of  Japan,  but  we 
have  good  reason  to  hope  that  it  will  be  in  the  same  sense.  Now  that 
these  views  have  been  received,  I  am  glad  to  be  at  liberty  to  inform 
the  House  of  Commons  fully  regarding  the  course  which  our  discussions 
in  the  Imperial  Cabinet  took.  I  do  this  with  particular  satisfaction, 
because  it  will  show  how  very  valuable  a  step  forward  we  have  been  able 
to  take  by  common  consent  in  the  sphere  of  foreign  affairs." 

After  discussing  at  some  length  the  broad  hues  of  policy  in  the  Pacific 
and  Far  East  as  considered  in  the  meetings  of  the  Imperial  Cabinet,  and 
especially  with  reference  to  the  Anglo-Japanese  Alliance,  the  Prime  Min- 
ister concluded: 

"The  views  of  the  President  of  the  United  States  were  made  public 
by  the  American  Government  this  morning.  As  is  known  to  the  House, 
Mr.  Harding  has  taken  the  momentous  step  of  inviting  the  Powers  to  a 
Conference  on  the  limitation  of  armaments,  to  be  held  in  Washington  in 
the  near  future,  and  he  also  suggests  a  preliminary  meeting  on  Pacific  and 
Far  Eastern  questions  between  the  Powers  most  directly  interested  in  the 
peace  and  welfare  of  that  great  region,  which  is  assuming  the  first  impor- 
tance in  international  affairs.  I  need  not  say  that  we  welcome  with  the 
utmost  pleasure  President  Harding's  wise  and  courteous  initiative.  In 
saying  this  I  know  that  I  speak  for  the  Empire  as  a  whole.  The  world 
has  been  looking  to  the  United  States  for  such  a  lead.  I  am  confident 
that  the  House  will  esteem  it  as  an  act  of  farseeing  statesmanship  and  will 
whole-heartedly  wish  it  success.  I  need  hardly  say  that  no  effort  will  be 
lacking  to  make  it  so  on  the  part  of  the  British  Empire,  which  shares  to 
the  full  the  liberal  and  progressive  spirit  inspiring  it." 


6  CHINA  AT  THE  CONFERENCE 

American  Government  expressed  the  hope  that  the 
Japanese  Government  would  not  press  its  inquiry  as 
to  a  fuller  statement  of  the  nature  and  scope  of  the 
Pacific  and  Far  Eastern  questions  which  were  to  be 
discussed.  The  precise  agenda  of  the  Conference,  the 
American  Government  declared,  could  be  later  ar- 
rived at. 

To  this  communication  Japan  replied  on  July  27, 
accepting  the  invitation,  with,  however,  the  under- 
standing that  the  United  States,  prior  to  the  meeting 
of  the  Conference,  would  proceed  with  exchanges  of 
opinion  regarding  the  nature  and  scope  of  the  Pacific 
and  Far  Eastern  questions  to  be  discussed.  The 
Japanese  reply  continued : 

The  Japanese  Government  have  been  made  aware  through  the 
communications  and  the  published  statement  of  the  American  Gov- 
ernment and  the  conversations  between  the  Secretary  of  State  and 
Baron  Shidehara  that  the  proposition  of  the  American  Government 
to  discuss  the  Pacific  and  Far  Eastern  problems  is  based  on  the  close 
bearing  they  have  on  the  question  of  the  limitation  of  armament 
which  is  the  original  and  principal  aim  of  the  Conference,  and  that 
therefore  the  main  object  of  discussing  these  problems  is  to  reach  a 
common  understanding  in  regard  to  general  principles  and  policies 
in  the  Pacific  and  the  Far  East.  Desiring,  as  they  do,  to  contribute 
to  the  establishment  of  an  enduring  peace  and  to  the  advancement  of 
human  welfare,  the  Japanese  Government  earnestly  hope  that  the 
proposed  Conference  may  attain  the  expected  results  and  their  ideals 
may  thereby  be  brought  nearer  to  realization. 

In  order  to  ensure  the  success  of  the  Conference,  the  Japanese 
Government  deem  it  advisable  that  the  agenda  thereof  should  be 
arranged  in  accordance  with  the  main  object  of  the  discussions  as 
above  defined,  and  that  introduction  therein  of  problems  such  as 
are  of  sole  concern  to  certain  particular  Powers  or  such  matters 
that  may  be  regarded  accomplished  facts  should  be  scrupulously 
avoided. 


CONVENING  OF  CONFERENCE  7 

Finally,  on  August  24,  the  Japanese  Government 
expressed  itself  as  in  full  accord  with  the  purposes  of 
the  Conference,  but  nevertheless,  in  its  communica- 
tion of  that  date  to  the  American  Government,  re- 
peated its  imderstanding  that  the  scope  of  the  Pacific 
and  Far  Eastern  questions  to  be  discussed  was  to  be 
fixed  by  an  exchange  of  opinions  prior  to  the  assem- 
bling of  the  Conference,  and,  furthermore,  expressed 
the  hope  that  the  agenda  of  the  Conference  would  in 
this  way  be  arranged  in  harmony  with  the  suggestions 
made  in  its  prior  memorandum. 

The  foregoing  correspondence  gives  ample  evidence 
to  the  fact  that  the  government  of  Japan  did  not  look 
to  the  Conference  without  misgivings.  It  was  clearly 
evident  that  it  felt  that,  so  far  as  the  discussion  of 
Pacific  and  Far  Eastern  questions  was  concerned,  it 
might  be  called  upon  to  give  justifications  of  certain 
of  its  acts  which  it  would  be  difficult  to  give  and  that 
from  the  Conference  might  result  policies  or  deter- 
minations which  would  not  be  agreeable  to  itself. 

The  Formal  Invitation  to  the  Principal  Allied  and 
Associated  Powers.  All  of  the  Powers  addressed  hav- 
ing thus  given  their  approval  to  the  proposition  that 
a  Conference  should  be  convened  at  Washington 
which  should  consider  not  only  questions  of  Arma- 
ment but  Pacific  and  Far  Eastern  political  questions 
as  well,  the  President  of  the  United  States,  on  August 
11, 1921,  sent  the  following  fonnal  invitation  to  Great 
Britain,  France,  Italy,  and  Japan : 

The  President  is  deeply  gratified  at  the  cordial  response  to  his 
suggestion  that  there  should  be  a  conference  on  the  subject  of  limita- 
tion of  armament,  in  connection  with  which  Pacific  and  Far  Eastern 
questions  should  also  be  discussed. 


8  CHINA  AT  THE  CONFERENCE 

Productive  labor  is  staggering  under  an  economic  burden  too 
heavy  to  be  borne  unless  the  present  vast  public  expenditures  are 
greatly  reduced.  It  is  idle  to  look  for  stability,  or  the  assurance 
of  social  justice,  or  the  security  of  peace,  while  wasteful  and  unpro- 
ductive outlays  deprive  effort  of  its  just  reward  and  defeat  the  rea- 
sonable expectation  of  progress.  The  enormous  disbursements  in 
the  rivalries  of  armaments  manifestly  constitute  the  greater  part  of 
the  encumbrance  upon  enterprise  and  national  prosperity;  and 
avoidable  or  extravagant  expense  of  this  nature  is  not  only  without 
economic  justification,  but  is  a  constant  menace  to  the  peace  of  the 
world  rather  than  an  assurance  of  its  preservation.  Yet  there  would 
seem  to  be  no  ground  to  expect  the  halting  of  these  increasing  out- 
lays imless  the  powers  most  largely  concerned  find  a  satisfactory 
basis  for  an  agreement  to  effect  their  limitation.  The  time  is  be- 
lieved to  be  opportune  for  these  powers  to  approach  this  subject 
directly  and  in  conference;  and  while,  in  the  discussion  of  arma- 
ment, the  question  of  naval  armament  may  naturally  have  first  place, 
it  has  been  thought  best  not  to  exclude  questions  pertaining  to  other 
armament  to  the  end  that  all  practicable  measures  of  relief  may  have 
appropriate  consideration.  It  may  also  be  found  advisable  to  formu- 
late proposals  by  which  in  the  interest  of  humanity  the  use  of  new 
agencies  of  warfare  may  be  suitably  controlled. 

It  is,  however,  quite  clear  that  there  can  be  no  final  assurance  of 
the  peace  of  the  world  in  the  absence  of  the  desire  for  peace,  and  the 
prospect  of  reduced  armaments  is  not  a  hopeful  one  unless  this 
desire  finds  expression  in  a  practical  effort  to  remove  cause  of  mis- 
understanding and  to  seek  ground  for  agreement  as  to  the  principles 
and  their  application.  It  is  the  earnest  wish  of  this  Government 
that  through  an  interchange  of  views  with  the  facilities  afforded  by 
a  conference,  it  may  be  possible  to  fijid  a  solution  of  Pacific  and  Far 
Eastern  problems  of  unquestioned  importance  at  this  time,  that  is, 
such  common  understandings  with  respect  to  matters  which  have 
been  and  are  of  international  concern  as  may  serve  to  promote 
enduring  friendship  among  our  peoples. 

It  is  not  the  purpose  of  this  Government  to  attempt  to  define  the 
scope  of  the  discussion  in  relation  to  the  Pacific  and  Far  East,  but 
rather  to  leave  this  to  be  the  subject  of  suggestions  to  be  exchanged 
before  the  meeting  of  the  Conference  in  the  expectation  that  the 


CONVENING  OP  CONFERENCE  9 

spirit  of  friendship  and  a  cordial  appreciation  of  the  importance  of 
the  elimination  of  sources  of  controversy  will  govern  the  final 
decision. 

Accordingly,  in  pursuance  of  the  proposal  which  has  been  made, 
and  in  the  light  of  the  gracious  indication  of  its  acceptance,  the 
President  invites  the  Government  of  Great  Britain  to  participate 
in  a  conference  on  the  subject  of  Limitation  of  Armament,  in  con- 
nection with  which  Pacific  and  Far  Eastern  questions  will  also  be 
discussed,  to  be  held  in  Washington  on  tlie  11th  day  of  November, 
1921. 

The  Invitation  to  China.  Upon  the  same  date — 
August  11 — an  invitation  was  sent  to  the  Chinese 
Government,  which,  it  will  appear,  was  worded  simi- 
larly to  that  sent  to  the  other  Powers  except  that  the 
paragraph  referring  specifically  to  the  limitation  of 
armaments  was  omitted,  and  China  was  invited  to 
participate  only  in  the  discussion  of  Pacific  and  Far 
Eastern  questions.    The  invitation  ran: 

Accordingly,  in  pursuance  of  the  proposal  which  has  been  made, 
and  in  the  light  of  the  gracious  indication  of  its  acceptance,  the 
President  invites  the  Government  of  the  Republic  of  China  to 
participate  in  the  discussion  of  Pacific  and  Far  Eastern  questions, 
ir  connection  with  the  Conference  on  the  subject  of  Limitation  of 
Armament,  to  be  held  in  Washington,  on  the  11th  day  of  November, 
1921. 

The  reply  of  the  Chinese  Minister  at  Washington 
addressed  to  the  American  Secretary  of  State  was 
prompt,  and  was  as  follows : 

August  17,  1921. 
Sir. — I  have  the  honor  to  acknowledge  the  receipt  of  your  De- 
partment's memorandum  of  the  11th  instant,  which  gives  the  text 
of  the  invitation  of  the  President  of  the  United  States  transmitted 
to  the  Government  of  the  Republic  of  China  on  that  date  through 
the  American  Legation  at  Peking. 


10  CHINA  AT  THE  CONFERENCE 

I  am  instructed  by  my  Government,  in  a  cablegram  dated  August 
16, 1921,  to  communicate  to  you  the  following  reply : 

"  On  the  13th  instant  a  note  was  received  from  the  American 
Charg6  d' Affaires  at  Peking  transmitting  the  invitation  of  the 
President  of  the  United  States  to  the  Government  of  the  Republic 
of  China  to  participate  in  a  conference  to  be  held  in  Washington  on 
the  11th  day  of  November,  1921. 

"  A  conference  for  the  purpose  stated  meets  with  the  hearty  con- 
currence of  the  Government  of  the  Republic  of  China.  Since  the 
conclusion  of  the  war  in  Europe  the  fear  is  general  that  there  may 
again  be  a  recurrence  of  the  horrors  of  war.  Furthermore,  the  center 
of  gravity  in  matters  international  has  recently  shifted  to  the  Pacific 
and  the  Far  East.  China  occupies  an  important  place  not  only  on 
account  of  the  extent  of  its  territory  and  the  density  of  its  popula- 
tion, but  also  on  account  of  its  geographical  position.  The  Pacific 
and  Far  Eastern  questions  as  viewed  by  the  Chinese  people  are  ques- 
tions affecting  the  peace  of  the  world  of  the  present  day. 

"  This  Conference  at  Washington,  called  by  the  President  of  the 
United  States  for  the  promotion  of  peace,  cannot  but  contribute  in 
a  large  measure  to  the  accomplishment  of  results  that  will  enable  the 
people  of  the  world  to  enjoy  prosperity  and  happiness  and  obtain 
permanent  release  from  the  calamities  of  war.  It  is  with  special 
satisfaction  that  the  Government  of  the  Republic  of  China  makes 
known  its  desire  to  co-operate  on  a  footing  of  equality  with  other 
governments  in  this  beneficent  movement. 

"  The  American  Government  by  declaring  that  it  is  not  its  purpose 
to  attempt  to  define  the  scope  of  the  discussion  in  relation  to  the 
Pacific  and  Far  East  gives  evidence  of  its  readiness  to  be  fair  to  all 
without  any  preconceived  bias.  The  Government  of  the  Republic 
of  China  desires  to  take  the  same  position,  and  will  participate  in 
the  Conference  in  the  spirit  of  friendship  and  with  a  cordial  appre- 
ciation of  the  importance  of  the  elimination  of  the  sources  of  con- 
troversy as  stated  in  the  American  Charge's  note  and  observe  perfect 
frankness  and  cordiality  in  the  exchange  of  views  and  in  arriving  at 
decisions  to  the  end  that  the  purpose  of  the  President  of  the  United 
States  to  promote  universal  peace  may  be  fulfilled." 

Accept,  Sir,  the  renewed  assurance  of  my  highest  consideration. 

Sao-Kjj' Alfred  Sze. 


CONVENING  OF  CONFERENCE        11 

Belgium,   Netherlands   and  Portugal  Invited.      In 

view  of  their  several  interests  in  the  Far  East  invita- 
tions were  later  extended  to  and  accepted  by  Belgium, 
the  Netherlands  and  Portugal  to  participate  in  the 
work  of  the  Conference  so  far  as  it  might  relate  to 
Pacific  and  Far  Eastern  questions.  Thus,  in  result, 
the  Conference  became  one  of  five  Powers  so  far  as 
the  limitation  of  armaments  was  concerned ;  and  one 
of  nine  Powers,  so  far  as  Pacific  and  Far  Eastern 
questions  were  concerned. 

The  Delegates.  The  following  are  the  names  of  the 
Delegates  sent  by  the  participating  Governments  to 
the  Conference : " 

For  the  United  States  of  Ameeica  : 
Charles  Evans  Hughes. 
Henry  Cabot  Lodge. 
Oscar  W.  Underwood. 
Elihu  Root. 
Citizens  of  the  United  States. 
Fob  Belgium  : 

Baron  de  Cartier,  Belgian  Ambassador  to  the  United  States. 
Foe  the  British  Empire  : 
The  Right  Honorable  A.  J.  Balfour,  0.  M.,  M.  P.,  Lord  President 

of  the  Council. 
The  Right  Honorable  Lord  Lee  of  Fareham,  G.  B.  E.,  K.  C.  B., 

First  Lord  of  the  Admiralty. 
The  Right  Honorable  Sir  Auckland  Geddes,  K.  C.  B.,  British 
Ambassador. 
Canada — 

The  Right  Honorable  Sir  Robert  Borden,  Q.  C.  M.  G., 
K.C. 

"The  complete  list  of  the  Chinese  Delegation,  including  Advisers,  Secre- 
taries, Counselors,  etc.,  will  be  found  in  the  Appendix. 


12  CHINA  AT  THE  CONFERENCE 

Atistralta — 

Senator  the  Right  Honorable  G.  F.  Pearce,  Australian 
Minister  for  Defense. 
New  Zealand — 

The  Honorable  Sir  John  Salmond,  Judge  of  the  Supreme 
Court  of  New  Zealand. 
India — 

The  Right  Honorable  Srinivasa  Sastri,  member  of  the 
Indian  Council  of  State. 
Fob  China  : 

Mr.   Sao-Ke   Alfred   Sze,   Envoy  Extraordinary  and  Minister 

Plenipotentiary  to  United  States  of  America. 
Mr.  V.  K.  Wellington  Koo,  Envoy  Extraordinary  and  Minister 

Plenipotentiary  to  the  Court  of  St.  James. 
Mr.  Chung-Hui  Wang,  Chief  Justice  of  the  Supreme  Court  of  the 
Republic  of  China. 
Foe  France: 
M.   Aristide   Briand,   President   of  the   Council,   Minister   for 

Foreign  Affairs. 
M.  Ren6  Viviani,  Deputy,  Former  President  of  the  Council. 
M.  Albert  Sarraut,  Senator,  Minister  of  Colonies. 
M.  Jules  Jusserand,  Ambassador  of  France  to  the  United  States. 
Fob  Italy  : 

Signor  Carlo  Schanzer,  Senator. 

Signor  Vittorio  Rolandi-Ricci,  Senator,  Italian  Ambassador  to 

the  United  States. 
Signor  Luigi  Albertini,  Senator. 
For  Japan  : 

Baron  Tomasaburo  Kato,  Minister  of  Navy. 
Baron  Kijuro  Shidehara,  Ambassador  at  Washington. 
Prince  lyesato  Tokugawa,  President  of  House  of  Peers. 
Mr.  Masanao  Hanihara,  Vice  Minister  for  Foreign  Affairs. 
Fob  The  Netheelands  : 
Jonkheer  H.  A.  van  Kamebeek,  Minister  for  Foreign  Affairs. 
Jonkheer  F.  Beelaerts  van  Blokland,  Envoy  Extraordinary  and 
Minister  Plenipotentiary,  Chief  of  the  Political  Division  of  the 
Ministry  for  Foreign  Affairs. 


CONVENING  OF  CONFERENCE        13 

Dr.  E.  Moresco,  Vice  President  of  the  Council  of  the  Netherlands 

East  Indies. 
Dr.  J.  C.  A.  Everwijn,  Netherlands  Minister  to  the  United  States. 
Jonkheer  W.  H.  de  Beaufort,  Minister  Plenipotentiary. 
Fob  Portugal: 

Viscount  d'Alte,  Portuguese  Minister  to  the  United  States. 
Captain  E.  de  Vasconcellos. 


CHAPTER  II 

The  Need  for  the  Discussion  by  the  Conference 
OF  Pacific  and  Far  Eastern  Questions 


As  is  well  known  the  Conference  in  its  primary  con- 
ception was  to  be  one  for  arriving  at  a  programme 
whereby  the  five  Powers — America,  Great  Britain, 
France,  Italy  and  Japan — might  obtain  relief  from 
the  heavy  economic  burdens  imposed  upon  them  by 
their  competitive  struggle  to  create  and  maintain  vast 
military  and  naval  establishments.  That,  as  auxiliary 
to  this,  it  was  necessary  to  remove,  as  far  as  might  be 
done,  possible  causes  of  war  was,  however,  early  seen, 
and,  furthermore,  it  was  appreciated  that,  possibly 
nowhere  more  than  in  the  Far  East,  were  there  con- 
ditions existing  and  policies  in  operation  which,  if 
imcorrected  or  unchanged,  would  be  provocative  of 
international  controversies  and  possibly  of  war. 
The  President  of  the  United  States  in  his  letter  of 
invitation  to  the  Powers  to  participate  in  the  Con- 
ference referred  in  careful  language  to  this  fact  but 
did  not  attempt  to  specify  the  conditions  that  needed 
to  be  corrected  or  the  policies  that  needed  to  be 
changed.  We  may  quote  again  his  words  upon  this 
point: 

It  is  the  earnest  wish  of  this  Government,  that  through  an  inter- 
change of  views  with  the  facilities  afforded  by  a  conference,  it  may 
be  possible  to  find  a  solution  of  Pacific  and  Far  Eastern  problems 
of  unquestioned  importance  at  this  time,  that  is,  such  common 
14 


FAE  EASTERN  QUESTIONS  .  15 

understandings  with  respect  to  matters  which  have  been  and  are  of 
international  concern  as  may  serve  to  promote  enduring  friendship 
among  our  peoples. 

The  specific  matters  regarding  which  common 
understandings  among  the  Powers  concerned  needed 
to  be  arrived  at  can  best  be  considered  seriatim  in 
the  account  which  will  be  given  of  the  work  of  the 
Conference.  It  will,  however,  be  appropriate  and 
advisable  to  give  here  a  general  characterization  of 
the  situation  in  the  Far  East  in  order  to  show,  in 
broad  outlines,  the  reasons  why  it  was  felt  necessary 
that  there  should  be  a  joint  discussion  of  it  by  the 
nine  Powers  concerned. 

China's  Weakness   and  Japan's   Ambitions.      Two 

elements  united  to  raise  a  serious  international  situa- 
tion in  the  Far  East.  Upon  the  one  hand  was  China 
with  its  vast  territory,  its  millions  of  population, 
its  considerable  natural  resources,  its  potential  mar- 
ket for  the  manufactured  goods  of  the  world  and  for 
the  investment  of  foreign  capital ;  its  special  civiliza- 
tion, but,  withal,  its  lack  of  an  effective  administra- 
tive system  and  its  great  military  weakness.  Upon 
the  other  hand  there  was  Japan,  with  a  strong,  cen- 
tralized, bureaucratic,  monarchical  government, 
largely  under  the  control  of  militarists,  with  undis- 
guised imperialistic  policies  eager  to  widen  Japanese 
political  and  economic  influence  and  control  if  not 
Japanese  sovereignty,  and  exhibiting  little  regard 
for  the  legal  or  ethical  rights  of  other  peoples  whose 
interests  might  stand  in  the  way  of  the  realization 
of  its  own  ambitions.  Thus,  by  a  series  of  actions 
dating  from  the  Sino- Japanese  War  of  1895,  but 


1«  CHINA  AT  THE  CONFERENCE 

especially  from  the  Russo-Japanese  War  of  1905, 
Japan  had  shown  to  the  world  her  desire  and  inten- 
tion, if  not  checked,  to  dominate  Eastern  Asia  and 
possibly  the  entire  Far  East.  In  1895  she  annexed 
Pescadores  group  of  islands  and  the  great  island  of 
Formosa  lying  off  the  southern  coast  of  China  and, 
before  that  time,  belonging  to  China,  and  would  have 
annexed  the  southern  portion  of  the  province  of 
Fengtien  and  appurtenant  islands,^  had  not  France, 
Germany  and  Russia  intervened.^  In  1905  Japan 
expelled  Russia  from  South  Manchuria  and  installed 
herself  in  Russia's  place,  and  from  that  time  forward 
showed  herself  determined  to  exercise  political  as 
well  as  railway  and  other  forms  of  economic  control 
in  that  vast  and  rich  area  of  China.  At  this  time 
also  she  again  obtained  possession,  by  way  of  lease, 
of  the  southern  portion  of  the  Province  of  Fengtien 
— ^known  as  the  Liaotung  Peninsular  or  Kwantung 
District.  In  that  same  year  Japan  also  brought 
Korea  imder  her  effective  administrative  control,  and, 
in  1910,  despite  repeated  assurances  that  the  sover- 
eignty and  independence  of  that  country  would  be 
respected,  formally  annexed  it  and  made  it  an 
integral  part  of  the  Japanese  Empire.  In  1915  came 
the  Twenty-One  Demands  by  Japan  upon  China,  by 
the  presentation  of  which  Japan  made  it  no  longer 
possible  for  her  to  deny,  without  insulting  the  intelli- 
gence of  those  to  whom  the  denial  might  be  addressed, 
that  it  was  her  desire  to  dominate  China  politically 

*See  Treaty  of  Peace  of  April  17,  1895,    MacMurray's  Treaties  with 
and  Concerning  China,  p.  18. 
*8ee  MacMurray,  pp.  50-53. 


FAE  EASTERN  QUESTIONS  17 

as  well  as  economically.  Finally,  by  her  conduct  in 
Eastern  Siberia  since  the  Allied  intervention  in  that 
country,  Japan  has  given  clear  evidence  of  her  desire 
to  obtain  a  paramount  economic  and  political  position 
in  that  portion  of  Eastern  Asia. 

The  significance  of  these  series  of  acts  by  Japan 
was  such  that  even  he  who  ran  could  read,  and  it  is 
therefore  but  fair  to  say  that  the  Far  Eastern  Prob- 
lem has  been  due  to  two  factors,  the  one  passive  and 
the  other  active.  The  political  and  military  weakness 
of  China,  and,  after  the  Russian  Revolution  of  1917, 
of  Eastern  Siberia  as  well,  has  furnished  the  oppor- 
tunity; the  natural  resources  and  agricultural 
products  of  China  and  Russia  have  furnished  the 
temptation ;  and  her  own  increasing  population  and 
lack  of  mineral  resources  have  furnished  Japan  with 
the  incentive  for  her  aggressive  imperialistic  policies. 

Interests  of  Western  Powers.  It  may,  however,  be 
asked :  What  have  been,  or  are,  the  direct  interests 
of  the  Western  Powers  which  have  caused  them  to 
view  with  concern  these  developments  in  the  Far 
East,  and  which  have  been  deemed  sufficient  to  make 
it  desirable  that  the  general  situation  should  be  dis- 
cussed in  a  Conference  in  which  they  should  all  par- 
ticipate ?    The  answer  to  this  question  is  as  follows : 

In  the  first  place,  the  Western  Powers  participat- 
ing in  the  Conference,  with  the  exception  of  Italy 
and  Belgiimi  have  important  territorial  possessions 
in  the  Pacific  and  Far  East  which  need  to  be  pro- 
tected, and  Belgium  has  in  China  extensive  financial 
investments.  All  of  the  Powers  have  in  China  com- 
mercial interests  already  considerable  in  amount  but 

3 


18  CHINA  AT  THE  CONFEEENCE 

potentially  still  greater  if  reference  be  had  to  the 
future.  Added  to  these  interests,  material  in  char- 
acter, are  two  other  factors  psychological  or  ethical 
in  character.  So  far  as  China  is  concerned,  the 
Western  Powers  have  undoubtedly  been  influenced, 
though  not  controlled,  by  an  unwillingness  to  see  that 
country  unjustly  and  oppressively  treated.  So  far 
as  Japan  is  concerned,  the  Western  Powers,  espe- 
cially since  1914,  have  viewed  with  disfavor  the 
paramount  influence  exerted  by  the  Japanese  mili- 
tarists, the  continued  maintenance  of  monarchical 
bureaucratic  government,  and  the  adoption  by  the 
Japanese  Government  of  policies  which,  in  political 
and  ethical  character,  it  has  been  difficult  to  dis- 
tinguish from  those  of  monarchical  Prussia.  It  is 
not  surprising  that  the  Japanese  people  should  have 
objected  to  being  termed  the  Prussians  of  the  East, 
but  that  they  have  been  so  viewed,  and  that  by  the 
actions  of  their  Government  justification  has  been 
given  for  this  characterization,  there  can  be  little 
doubt. 

Reduced  then,  to  its  simplest  and  baldest  terms, 
the  chief  political  problem  which  the  Conference  was 
called  to  solve  was  to  find  means  of  placing  a 
restraint  upon  the  imperialistic  ambitions  of  Japan. 
In  addition  it  was  hoped  that  policies  could  be  framed 
and  declarations  made  that  would  be  acceptable  to 
all  the  Powers  having  treaty  relations  with  China 
whereby  harmonious  and  mutually  beneficial  political 
and  economic  relations  with  China  could  be  estab- 
lished and  maintained. 


CHAPTER  III 

The  Organization  and  Procedure  of  the 
Conference 


Plenary  Sessions.  For  final  authoritative  action, 
the  Conference  met  in  what  were  termed  Plenary 
Sessions  of  which  seven  in  aU  were  held.  The  limi- 
tations of  space  of  the  room  in  which  the  sessions 
were  held  made  it  necessary  that  only  persons  obtain- 
ing tickets  of  admission  could  be  permitted  to  attend. 
The  sessions  were,  however,  public  in  the  fullest 
sense  of  the  word.  That  is,  newspaper  reporters 
were  present  and  no  restrictions  were  placed  upon 
what  they  might  publish  regarding  the  proceedings. 
In  fact,  however,  the  work  of  these  sessions,  aside 
from  a  number  of  f onnal  addresses,  as,  for  example, 
by  the  President  of  the  United  States,  by  Secretary 
of  State  Hughes,  by  Mr.  Arthur  Balfour,  by  M. 
Briand  and  others,  and  formal  announcements,  was 
almost  wholly  limited  to  the  approval,  without  debate, 
and  only  occasionally  with  comments  and  explanatory 
statements,  of  the  decisions  which  had  been  previ- 
ously arrived  at  in  Committees  of  the  Whole. 

Committees    of    the    Whole    and    Sub-Committees. 

These  Committees  of  the  Whole  were  two  in  number, 
the  one  devoted  to  the  consideration  of  matters  of 

19 


20  CHINA  AT  THE  CONFERENCE 

armament,  and  the  other  to  Pacific  and  Far  Eastern 
Questions.  The  Delegates  of  Powers,  including 
China,  which  had  not  been  invited  to  participate  in 
the  discussion  of  armaments  of  course  did  not  attend 
the  meetings  of  the  Committee  of  the  Whole  which 
dealt  with  that  subject. 

These  Committees  of  the  Whole,  it  may  be  further 
observed,  foimd  it  expedient,  in  a  number  of  cases, 
to  create  sub-committees  or  drafting  committees  for 
the  preliminary  and  detailed  discussion  of  special 
topics.  Thus  it  happened  that  some  of  the  resolu- 
tions or  agreements  finally  adopted  by  the  Confer- 
ence in  Plenary  Session  had  been  first  discussed  in 
sub-committees  of  the  Committee  of  the  Whole, 
referred  to  drafting  committees,  perhaps  again  re- 
ferred to  a  sub-committee  then  reported  to  and 
adopted  by  the  Committee  of  the  Whole,  and,  by  that 
Committee,  reported  to  the  Conference  in  Plenary 
Session.^ 

Procedure.  The  meetings  of  the  Committees  of 
the  Whole  were  not  open  to  the  public,  nor  were 
verbatim  reports  of  all  their  proceedings  published. 
However,  in  accordance  with  the  general  policy 
adopted  by  the  Conference  of  giving  as  much  pub- 
licity to  its  work  as  was  possible,  press  '^  Commu- 
niques "   were    issued    after   each   session    of   the 

*  Among  such  sub-committees  were  the  following:  On  Post  Offices,  on 
Chinese  Revenues  (Tariff),  on  Extraterritoriality,  and  the  Drafting  Com- 
mittee, which,  in  addition  to  its  drafting  functions,  considered  the  matters 
of  foreign  troops  and  wireless  installations  in  China.  At  the  first  plenary 
session  there  were  also  appointed  two  committees  on  Programme  and 
Procedure  to  report  respectively  upon  the  programme  and  procedure  to 
be  followed  by  the  two  Committees  of  the  Whole. 


CONFERENCE  PROCEDURE  21 

Committees  which,  in  some  cases,  were  practically 
verbatim  statements  of  what  was  said,  and,  in  all 
cases,  were  detailed  in  character.  Sometimes  press 
communiques  were  issued  of  the  proceedings  of  even 
the  sub-committees.  It  does  not  need  to  be  said, 
however,  that  an  important  part  of  the  work  of  the 
Delegates  to  the  Conference  took  the  form  of  highly 
confidential  interviews  between  themselves  and  the 
representatives  or  spokesmen  of  the  other  Powers 
whereby  preliminary  understandings  were  arrived  at 
before  final  action  was  taken  either  in  the  sub-com- 
mittees or  Committees  of  the  Whole. 

In  connection  and  close  association  with  the 
Conference,  a  nmnber  of  highly  important  treaty 
agreements  were  arrived  at  and  reported  to  the  Con- 
ference. These  treaties,  the  two  most  important  of 
which  were  the  so-called  "  Four  Power  Pact ''  and 
the  Sino-Japanese  Shantung  Treaty,  were  reported 
to  the  Conference  and  noted  upon  its  official  records, 
and  thus  obtained,  morally  and  politically,  if  not 
juristically,  a  more  solemn  recognition  than  if  they 
had  been  negotiated  and  signed  by  the  Powers  con- 
cerned imder  ordinary  circmnstances.  But  they  did 
not  result  from  approving  votes  in  and  by  the  Con- 
ference itself.  The  relation  to  the  Conference  of  the 
Shantung  Treaty  and  of  the  Conversations  leading 
to  its  drafting  and  signing,  will  be  more  particularly 
discussed  in  the  chapter  devoted  to  the  Shantung 
Question. 

The  Conference,  following  the  precedent  of  all 
other  similar  gatherings,  created  for  itself  a  General- 
Secretariat,  headed  by  a  Secretary-General,  whose 


22  CHINA  AT  THE  CONFERENCE 

function  it  was  to  keep  the  official  records  of  the 
Conference,  and  who,  it  is  announced,  will  prepare 
and  distribute  to  the  participating  Governments  an 
official  report  of  the  proceedings  and  determinations 
of  the  Conference.  The  Honorable  John  W.  Garrett 
was  elected  Secretary-General.  The  American  Sec- 
retary of  State,  Honorable  Charles  Evans  Hughes, 
was  unanimously  elected  Chairman  of  the  Confer- 
ence, and  of  such  committees  as  he  might  be  a 
member.  It  was  agreed  that,  at  the  Committees' 
meetings,  each  Delegation  should  be  accompanied  by 
one  secretary  and  one  technical  adviser.  It  was 
understood  that  each  Delegation,  through  its  own 
secretary,  should  keep  minutes  of  the  proceedings: 
also  that  the  Secretary-General  should  keep  a  fairly 
full  record,  and  should,  in  consultation  with  the 
secretaries  of  the  several  Delegations,  draw  up  a 
resume  thereof  which  should  be  subject  to  the 
approval  of  each  Delegation.  It  was  further  agreed 
that,  at  any  time,  a  Delegate  might  call  upon  a 
stenographer  to  take  down  verbatim  any  statement 
which  he  might  wish  to  make  and  have  it  thus 
recorded  in  the  minutes.  In  actual  practice  state- 
ments or  declarations  by  the  Delegations  were  fre- 
quently mimeographed  and  distributed  to  the  other 
Delegations,  sometimes  in  advance  of  their  presen- 
tation. 

It  should  also  be  said  that  not  infrequently,  in 
exercise  of  the  right  of  each  Delegation  to  revise  the 
reports  made  by  the  Secretary-General  of  what  was 
said  by  them,  considerable  elisions  were  made.  As 
it  was  not  known  to  the  other  Delegations  that  these 


CONFERENCE  PROCEDURE  23 

elisions  would  be  made,  the  result  is  that,  in  the 
Secretary-General's  minutes  there  occasionally  ap- 
pear gaps  or  instances  of  what  seem  to  be  irrelevancy. 

It  was  decided  that  Technical  Experts  might  be 
called  upon  to  supply  information  asked  of  them  by 
sub-committees  but  that  they  were  not  to  decide 
questions  of  policy. 

Regarding  press  Communiques,  it  was  agreed  that 
each  Delegation  could  make  public  its  own  statement. 
Not  infrequently,  however,  there  was  an  agreement 
by  all  the  Delegations  that  certain  portions  of  the 
discussions  in  committee  should  not  be  thus  made 
public. 

With  regard  to  the  relationship  between  the  adjust- 
ment of  the  Pacific  and  Far  Eastern  questions  and 
the  limitation  of  armaments.  Secretary  of  State 
Hughes,  in  his  opening  address  at  the  first  Plenary 
Session  of  the  Conference,  said : 

The  inclusion  of  the  proposal  for  the  discussion  of  Pacific  and 
Far  Eastern  questions  was  not  for  the  purpose  of  embarrassing  or 
delaying  an  agreement  for  limitation  of  armament,  but  rather  to 
support  that  undertaking  by  availing  ourselves  of  this  meeting  to 
endeavor  to  reach  a  common  understanding  as  to  the  principles  and 
policies  to  be  followed  in  the  Far  East  and  thus  greatly  to  diminish, 
and  if  possible  wholly  to  remove,  discernible  sources  of  controversy. 
It  is  believed  that  by  interchanges  of  views  at  this  opportune  time 
the  Governments  represented  here  may  find  a  basis  of  accord  and 
thus  give  expression  to  their  desire  to  assure  enduring  friendship. 

In  the  public  discussions  which  have  preceded  the  Conference, 
there  have  been  apparently  two  competing  views;  one,  that  the  con- 
sideration of  armament  should  await  the  result  of  the  discussion  of 
Far  Eastern  questions,  and  another,  that  the  latter  discussion  should 
be  postponed  until  an  agreement  for  limitation  of  armament  has  been 


24  CHINA  AT  THE  CONFERENCE 

reached.  I  am  unable  to  find  sufficient  reason  for  adopting  either 
of  these  extreme  views.  I  think  that  it  would  be  most  unfortunate 
if  we  should  disappoint  the  hopes  which  have  attached  to  this  meet- 
ing by  a  postponement  of  the  consideration  of  the  first  subject.  The 
world  looks  to  this  Conference  to  relieve  humanity  of  the  crushing 
burden  created  by  competition  in  armament,  and  it  is  the  view  of 
the  American  Government  that  we  should  meet  that  expectation 
without  any  unnecessary  delay.  It  is,  therefore,  proposed  that  the 
Conference  should  proceed  at  once  to  consider  the  question  of  the 
limitation  of  armament. 

This,  however,  does  not  mean  that  we  must  postpone  the  examina- 
tion of  Far  Eastern  questions.  These  questions  of  vast  importance 
press  for  solution.  It  is  hoped  that  immediate  provision  may  be 
made  to  deal  with  them  adequately,  and  it  is  suggested  that  it  may 
be  found  to  be  entirely  practicable  through  the  distribution  of  the 
work  among  designated  committees  to  make  progress  to  the  ends 
sought  to  be  achieved  without  either  subject  being  treated  as  a 
hindrance  to  the  proper  consideration  and  disposition  of  the  other. 

The  heads  of  the  several  Delegations  made  appro- 
priate replies  to  Secretary  Hughes'  address,  Mr.  Sze, 
in  behalf  of  the  Chinese  Delegation,  saying : 

Mr.  Chairman  and  Gentlemen :  The  Chinese  Government  desires 
to  record  its  gratification  that  this  meeting  of  the  nations  has  been 
called.  It  is  convinced  that  the  present  is  an  auspicious  time  for 
bringing  into  accord  the  political  and  economic  interests  of  the 
Powers  in  the  Pacific.  That  the  invitation  to  participate  in  this 
gathering  should  have  come  from  the  great  American  nation,  and 
that  the  sessions  are  to  be  held  in  its  capital  city,  is  a  source  of 
additional  gratification  to  the  Chinese  people.  They  and  their 
Government  wiU  cordially  co-operate  in  bringing  to  successful  con- 
clusion the  work  of  the  Conference. 

We  are  all  anxious  that  results  beneficial  to  the  world  shall  crown 
the  work  of  this  Conference.  Mr.  Chairman,  with  you  guiding  the 
meetings  of  the  Conference,  we  feel  confident  that  this  end  will  be 
reached. 


CONFERENCE  PROCEDURE  25 

The  proposition  of  Secretary  Hughes  that  the  two 
subjects  of  Armaments  and  Pacific  and  Far  Eastern 
Questions  shoidd  be  synchronously  considered  being 
accepted,  Committees  on  Programme  and  Procedure 
with  respect  to  these  two  matters  were  appointed, 
each  of  which  reported  a  recommendation,  which  was 
accepted  by  the  Conference,  that,  before  final  action 
by  the  Conference,  these  matters  should  be  discussed 
in  Committees  of  the  Whole.  The  result  was  that 
thenceforth  armaments  and  Pacific  and  Far  Eastern 
Questions  were  discussed  separately,  each  in  its  own 
Committee  of  the  Whole,  the  results  of  these  com- 
mittee discussions  being  reported  from  time  to  time 
to  the  Conference  in  Plenary  Session,  which  sessions 
were  convened  only  when  resolutions  had  been 
adopted  which  were  ready  for  final  and  authoritative 
action  upon  the  part  of  the  Conference. 

Agenda.  Prior  to  the  convening  of  the  Conference, 
the  American  Government  drew  up  an  Agenda  which, 
though  put  forward  as  tentative  in  character,  was,  in 
fact,  accepted  unchanged  by  the  Powers.  Upon 
receiving  this  Agenda,  the  Chinese  Government  at 
Peking  recommended  to  its  Minister  at  Washington 
that  certain  changes  and  additions  to  it  might  be 
suggested  to  the  American  Government.  Having 
received,  however,  verbal  assurances  as  to  the  liberal 
spirit  in  which  the  heads  of  the  proposed  Agenda 
would  be  interpreted,  and  being  therefore  assured 
that  China  would  have  full  opportunity  to  bring 
before  the  Conference  the  mattei*s  which  she  would 
wish  to  have  discussed,  these  recommendations  upon 
the  part  of  the  Peking  Government  were  not  pressed. 


26  CHINA  AT  THE  CONFERENCE 

The  Agenda  followed  by  the  Conference  for  the 
discussion  of  Pacific  and  Far  Eastern  Questions  was, 
therefore,  as  follows: 

1.  Questions  relating  to  China, 

First — Principles  to  be  applied. 
Second — Application. 
Subjects — 

(a)  Territorial  integrity. 

(b)  Administrative  integrity. 

(c)  Open  door — equality  of  commercial,  industrial 

opportunity. 

(d)  Concessions,  monopolies  or  preferential  eco- 

nomic privileges. 

(e)  Development  of  railways,  including  plans  re- 

lating to  Chinese  Eastern  Railway. 

(f )  Preferential  railroad  rates. 

(g)  Status  of  existing  commitments. 

2.  Siberia  (similar  headings). 

3.  Mandated  islands  (unless  questions  earlier  settled). 

Electrical  communications  in  the  Pacific. 
Under  the  heading  of  "  Status  of  Existing  Commitments  "  it  is 
expected  that  opportunity  will  be  afforded  to  consider  and  to  reach 
an  understanding  with  respect  to  unsettled  questions  involving  the 
nature  and  scope  of  commitments  under  which  claims  of  rights  may 
hereafter  be  asserted. 


CHAPTER  IV 
China's  Programme 


China's  Hopes.  It  has  been  pointed  out  in  the 
first  paragraph  of  this  volume  that  the  Conference, 
so  far  as  the  discussion  of  Pacific  and  Far  Eastern 
Questions  was  concerned,  devoted  itself  almost  exclu- 
sively to  a  consideration  of  Chinese  affairs.  It  is, 
however,  important  to  remember  that  the  primary 
purpose  of  the  Conference  was  not  to  furnish  relief 
to  China.  Its  primary  purpose  was  so  to  alter  con- 
ditions in  the  Pacific  and  Far  East  generally  as  to 
make  less  likely  international  controversies  in  the 
future,  and  thus  to  reduce,  as  far  as  possible,  the 
likelihood  of  war.  If,  from  the  action  to  be  taken  by 
the  Conference,  China  was  expected  to  receive  espe- 
cial benefit  this  would  be  because,  fortunately  for 
her,  the  existing  situation  could  be  bettered  only  by 
freeing  her  from  certain  of  the  treaty  bonds  which 
limited  the  autonomous  use  of  her  sovereign  powers, 
and  by  obtaining  a  cessation  of  acts  which  had  been 
in  violation  of  her  territorial  sovereignty  and 
administrative  integi-ity.  It  was,  indeed  hoped,  and, 
to  some  extent,  this  hope  was  realized,  that  the 
Powers  participating  in  the  Washington  Conference 
would,  in  their  actions,  exhibit  less  national  selfish- 
ness, and  a  higher  regard  for  principles  of  pure 
justice  than  had  previously  foimd  play  in  their  inter- 

27 


28  CHINA  AT  THE  CONFEEENCE 

national  policies.  It  was,  however,  too  much  to 
expect  that  nationalistic  interests  would  not  be  pre- 
dominantly potent  in  the  Conference.  It  was,  there- 
fore, not  to  be  expected  that  China  would  obtain  from 
the  Conference  all  that  she  might  desire  to  obtain, 
or  all  that,  upon  a  basis  of  abstract  justice,  she  ought 
to  obtain.  It  was  to  be  hoped,  however,  that  she 
would  obtain  substantial  relief  from  existing  viola- 
tions of  her  sovereign  rights  as  well  as  a  removal  or 
loosening  of  some  of  the  bonds  which,  by  treaties, 
had  restrained  her  freedom  of  political  and  adminis- 
trative action. 

For  many  years  China  had  been  imfortunately 
circumstanced  as  regards  her  relations  to  the  other 
Powers.  Very  early  she  developed  a  civilization 
which,  in  many  respects,  has  compelled  the  admira- 
tion of  the  world,  and  along  with  this  civilization  a 
form  of  government  and  methods  of  administration 
which,  as  their  long  persistence  showed,  were  well 
suited  to  the  simple  economic  life  which  her  people 
led.  When,  however,  she  was  brought  into  close 
contact  with  the  Western  World,  and  was  forced, 
whether  she  wished  it  or  not,  to  conform  to  their 
standards  of  international  intercourse,  to  receive 
within  her  borders  their  merchants  and  missionaries, 
and  to  adopt  many  of  the  features  of  their  intense 
commercial  and  industrial  life — when  this  had  come 
about,  it  soon  transpired  that  China  had  not  a  govern*- 
mental  organization  that  would  enable  her  to  defend 
herself  against  attacks  upon  her  sovereignty  and  ter- 
ritorial integrity.  Because  of  her  very  size,  as  weU 
as  because  of  her  lack  of  a  strong  executive  authority 


CHINA'S  PROGRAMME  29 

in  her  central  government,  China  found  herself  com- 
pelled to  surrender  the  suzerainty  or  sovereignty 
which  she  had  previously  exercised  over  certain  areas 
lying  outside  of  her  eighteen  Provinces,  and  also  to 
consent  to  the  exercise  within  her  borders  of  various 
forms  of  jurisdiction  which  have  lessened  the  effici- 
ency of  her  government  over  her  own  people  and 
derogated  from  her  dignity  as  a  great  State. 

This  had  been  her  misfortune,  but  it  was  her  good 
fortune  that  when,  in  the  Conference  at  Washington, 
there  was  to  be  a  general  consideration  by  all  the 
Powers  concerned  of  their  future  policies  in  the  Far 
East,  China  was  able  to  come  to  the  council  table  with 
no  acts  of  aggression  of  her  own  toward  other 
friendly  Powers  which  needed  to  be  explained  or 
defended,  and  that  she  was  able  to  appear  as  a  peti- 
tioner for  the  recognition  of  and  adherence  to 
principles  which  were  not  only  just  in  themselves  but 
which  in  their  application  would  be  of  benefit  to  all 
and  promotive  of  international  peace  and  good  will. 

In  other  words,  China,  at  the  Conference,  did  not 
have  to  ask  that  she  be  given  any  territory  the  legal 
title  of  which  was  not  already  conceded  to  be  hers. 
She  needed  to  ask  for  no  rights  other  than  those  uni- 
versally conceded  to  attach  to  sovereign  States.  She 
needed  to  ask  only  that  certain  wrongs  done  to  her 
in  the  past  should  be  corrected,  and  that  she  be  made 
more  fully  the  mistress  in  her  own  household.  And 
even  these  claims  she  could  put  forward,  not  in  abso- 
lute terms,  but  as  warranted  by  the  progress  which 
she  could  demonstrate  she  had  made  in  bringing  her 
institutions  and  administrative  methods  into  conso- 


30  CHINA  AT  THE  CONFERENCE 

nance  with  the  standards  of  right  and  efficiency  which 
the  Western  Nations  exact  of  themselves.  Thus 
supported,  China  believed  that  she  would  be  able  to 
show  that  what  she  sought  would  be  beneficial  to  the 
Western  Powers  as  well  as  to  herself. 

China's  Fears.  One  very  serious  disadvantage 
China  rested  under  at  the  Conference — one  which 
was  ever  present  in  the  minds  of  other  Delegations 
and  which  undoubtedly  operated  powerfully  to  pre- 
vent China  from  securing  much  of  the  relief  which 
she  failed  to  obtain.  This  disadvantage  was  due  to 
the  fact  of  the  disturbed  political  conditions  in  China 
itself,  and  the  slight  degree  of  effective  control  over 
the  country  which  the  central  government  at  Peking 
was  able  to  exert.  It  was  not  simply  that  there  was 
an  organization  in  the  south,  with  its  headquarters 
at  Canton,  which  claimed  to  be  the  **  constitutional  '* 
government  of  China  and  which  denied  legal  legiti- 
macy to  the  Peking  Government,  but  that,  throughout 
the  Provinces,  there  were  bodies  of  troops,  aggre- 
gating, according  to  some  estimates,  more  than  a 
million  men,  many  of  whom  were  not  under  sufficient 
discipline,  and  all  of  whom  were  commanded  by 
Tuchuns  who  paid  only  the  slightest  attention  to  the 
orders  or  wishes  of  the  civil  authorities,  who  fought 
against  one  another,  and,  not  infrequently,  committed 
acts  of  violence  against  persons  and  property  within 
the  regions  in  which  they  were  stationed.  Because  of 
its  weakness,  the  Peking  Government  for  several 
years  had  not  been  able  to  obtain  from  the  Provinces 
their  normal  contributions  to  the  Central  Treasury 
with  the  result  that,  deprived  of  an  adequate  revenue, 


CHINA'S  PROGRAMME  31 

CliLna  had  been  obliged  to  rely  upon  loans  for  its 
current  administrative  expenses.  Furthermore,  the 
Peking  Government,  because  of  a  lack  of  confidence 
by  the  Chinese  people  themselves  in  its  efficiency  and 
stability,  had  not  been  able,  except  in  small  measure, 
to  obtain  these  loans  from  Chinese  financial  interests, 
but  had  been  compelled  to  obtain  them  from  abroad, 
and  under  very  disadvantageous  conditions.  Finally, 
to  make  matters  still  worse,  just  before  the  con- 
vening of  the  Conference,  the  Peking  Government 
had  been  compelled  to  make  default  upon  certain  of 
its  foreign  loans. 

It  is  not  surprising,  therefore,  that  China  came  to 
the  Conference  with  mixed  feelings  of  hope  and  fear. 
it  hoped  for  relief  from  past  and  existing  wrongs  by 
foreign  Powers  against  herself.  It  feared  lest  these 
Powers  would  take  advantage  of  her  imdeniable 
domestic  disorder  and  administrative  weakness  to 
take  concerted  action  to  impose  new  restraints  upon 
the  autonomous  exercise  of  her  administrative  powers 
which  would  amount  to  a  political  receivership,  and 
which,  though  declared  to  be  temporary  in  character, 
might  easily  prove  permanent  and  thus  mark  the 
beginning  of  the  end  of  China's  status  as  a  sovereign 
and  independent  nation.  Upon  this  point  it  will 
be  found  that  China  won  a  complete  victory,  for 
not  only  were  no  new  limitations  imposed  upon 
her  by  the  Powers,  but  joint  declarations  by  all  the 
other  Powers  at  the  Conference  were  obtained  to 
the  effect  that  they  would  not  take  advantage  of  the 
existing  conditions  in  China  to  obtain  for  them- 
selves special  rights,  and  that  China  was  to  have 


32  CHINA  AT  THE  CONFERENCE 

the  fullest  and  most  unembarrassed  opportunity  to 
develop  and  maintain  for  herself  an  effective  and 
stable  government. 

China's  Ten  Points.  The  Chinese  Delegates  early 
considered  among  themselves  whether  it  would  be  the 
best  policy  first  to  bring  before  the  Conference  spe- 
cific proposals  for  action  upon  the  part  of  the  Powers, 
and  then  to  endeavor  to  have  adopted  certain  general 
principles  and  policies  which  it  was  hoped  the  Powers 
might  formally  adopt  for  the  guidance  and  control 
of  their  future  actions  in  the  Far  East  and  especially 
with  reference  to  China ;  or  whether  it  would  be  wiser 
first  to  seek  the  adoption  by  the  Powers  of  these  gen- 
eral principles,  and  then  to  bring  forward  the  specific 
applications  which  China  would  desire.  It  was  de- 
cided that  this  latter  procedure  would  be  likely  to 
lead  to  the  best  result,  and,  therefore,  at  the  opening 
of  the  first  meeting  of  the  Committee  of  the  Whole 
on  Pacific  and  Far  Eastern  Questions,  on  November 
16,  the  Chinese  Delegation  presented  what  have  since 
been  known  as  China's  Ten  Points. 

This  maneuver  upon  the  part  of  the  Chinese  Dele- 
gation was  undoubtedly  a  wise  one,  since  the  result 
was  that,  from  that  time  forward,  the  work  of  the 
Committee  assumed  almost  exclusively  the  character 
of  an  examination  of  the  Pacific  and  Far  Eastern 
situation  from  the  point  of  view  of  China.  That  is, 
China  appeared  as  the  proponent  of  the  matters 
which  were  discussed.  At  the  same  time  this  meant 
that  upon  the  Chinese  Delegation  was  thrown  by  far 
the  greatest  burden  of  work  which  any  of  the  Dele- 
gations at  the  Conference  had  to  bear.    Fortunately 


CHINA'S  PROGRAMME  33 

it  was  in  a  position  to  assume  this  burden,  and  carry 
it  with  satisfaction  to  the  Conference  throughout  the 
twelve  weeks  it  was  in  session  in  Washington. 

The  Ten  Points  of  China,  together  with  the  intro- 
ductory statement  of  His  Excellency  Mr.  Sze,  Doyen 
of  the  Chinese  Delegation,  were  as  follows : 

In  view  of  the  fact  that  China  must  necessarily  play  an  important 
part  in  the  deliberations  of  the  Conference  with  reference  to  the 
political  situation  in  the  Far  East,  the  Chinese  delegation  have 
thought  it  proper  that  they  should  take  the  first  opportunity  to  state 
certain  general  principles  which,  in  their  opinion,  should  guide  the 
Conference  in  the  determinations  which  it  is  to  make.  Certain  of 
the  specific  applications  of  the  principles  which  it  is  expected  that 
the  Conference  will  make  it  is  our  intention  later  to  bring  forward, 
but  at  the  present  time  it  is  deemed  sufficient  simply  to  propose  the 
principles  which  I  shall  presently  read. 

In  formulating  these  principles  the  purpose  has  been  kept  steadily 
in  view  of  obtaining  rules  in  accordance  with  which  existing  and  pos- 
sible future  political  and  economic  problems  in  the  Far  East  and  the 
Pacific  may  be  most  justly  settled  and  with  due  regard  to  the  rights 
and  legitimate  interests  of  all  the  powers  concerned.  Thus  it  has 
been  sought  to  harmonize  the  particular  interests  of  China  with 
the  general  interests  of  all  the  world. 

China  is  anxious  to  play  her  part  not  only  in  maintaining  peace, 
but  in  promoting  the  material  advancement  and  the  cultural  devel- 
opment of  all  the  nations.  She  wishes  to  make  her  vast  natural 
resources  available  to  all  peoples  who  need  them,  and  in  return  to 
receive  the  benefits  of  free  and  equal  intercourse  with  them.  In 
order  that  she  may  do  this,  it  is  necessary  that  she  should  have  every 
possible  opportunity  to  develop  her  political  institutions  in  accor- 
dance with  the  genius  and  needs  of  her  own  people.  China  is  now 
contending  with  certain  difficult  problems  which  necessarily  arise 
when  any  country  makes  a  radical  change  in  her  form  of  government. 

These  problems  she  will  be  able  to  solve  if  given  the  opportunity 
to  do  so.    This  means  not  only  that  she  should  be  freed  from  the 
danger  or  threat  of  foreign  aggression,  but  that,  so  far  as  circum- 
stances will  possibly  permit,  she  be  relieved  from  limitations  which 
4 


34  CHINA  AT  THE  CONFERENCE 

DOW  deprive  her  of  autonomous  administrative  action  and  prevent 
l)er  from  securing  adequate  public  revenues. 

In  conformity  with  the  agenda  of  the  Conference,  the  Chinese 
Government  proposes  for  the  consideration  of  and  adoption  by  the 
Conference  the  following  general  principles  to  be  applied  in  the 
determination  of  the  questions  relating  to  China : 

1.  (a)  The  Powers  engage  to  respect  and  observe  the  territorial 
integrity  and  political  and  administrative  independence  of  the 
Chinese  Republic. 

(b)  China  upon  her  part  is  prepared  to  give  an  undertaking  not 
to  alienate  or  lease  any  portion  of  her  territory  or  littoral  to  any 
Power. 

2.  China,  being  in  full  accord  with  the  principle  of  the  so-called 
open  door  or  equal  opportunity  for  the  commerce  and  industry  of 
all  nations  having  treaty  relations  with  China,  is  prepared  to  accept 
and  apply  it  in  all  parts  of  the  Chinese  Republic  without  exception. 

3.  With  a  view  to  strengthening  mutual  confidence  and  maintain- 
ing peace  in  the  Pacific  and  the  Far  East,  the  Powers  agree  not  to 
conclude  between  themselves  any  treaty  or  agreement  directly  affect- 
ing China  or  the  general  peace  in  these  regions  without  previously 
notifying  China  and  giving  to  her  an  opportunity  to  participate. 

4.  All  special  rights,  privileges,  immunities  or  commitments, 
whatever  their  character  or  contractual  basis,  claimed  by  any  of  the 
Powers  in  or  relating  to  China  are  to  be  declared,  and  all  such  or 
future  claims  not  so  made  known  are  to  be  deemed  null  and  void. 
The  rights,  privileges,  immunities  and  commitments,  not  known  or 
to  be  declared  are  to  be  examined  with  a  view  to  determining  their 
scope  and  vahdity  and,  if  valid,  to  harmonizing  them  with  one 
another  and  with  the  principles  declared  by  this  Conference. 

5.  Immediately  or  as  soon  as  circumstances  will  permit,  existing 
imitations  upon  China's  political  jurisdictional  and  administrative 
freedom  of  action  are  to  be  removed. 

6.  Reasonable,  definite  terms  of  duration  are  to  be  attached  to 
China's  present  commitment  which  are  without  time  limits. 

7.  In  the  interpretation  of  instruments  granting  special  rights 
or  privileges,  the  well-established  principle  of  construction  that  such 
grants  shall  be  strictly  construed  in  favor  of  the  grantors,  is  to  be 
observed. 


CHINA'S  PEOGEAMME  35 

8.  China's  rights  as  a  neutral  are  to  be  fully  respected  in  future 
wars  to  which  she  is  not  a  pari;y. 

9.  Provision  is  to  be  made  for  the  peaceful  settlement  of  inter- 
national disputes  in  the  Pacific  and  the  Far  East. 

10.  Provision  is  to  be  made  for  conferences  to  be  held  from  time  to 
time  for  the  discussion  of  international  questions  relative  to  the 
Pacific  and  the  Far  East,  as  a  basis  for  the  determination  of  common 
policies  of  the  Signatory  Powers  in  relation  thereto. 

By  the  Sub-Committee  on  Programme  and  Pro- 
cedure, composed  of  the  heads  of  the  nine  Delega- 
tions, it  was  decided  that,  in  the  Committee  of  the 
Whole,  there  should  first  be  a  general  discussion  of 
the  questions  relating  to  China  and  then  an  examina- 
tion of  the  various  particular  topics  in  the  order 
listed  in  the  Agenda  which  had  been  suggested  by  the 
American  Government,  together  with  a  consideration 
of  the  Chinese  proposals  in  so  far  as  they  might  relate 
to,  or  come  within  the  scope  of,  the  heads  of  that 
Agenda.  It  was,  however,  agreed,  when  this  pro- 
gramme was  reported  to  the  Committee  of  the  Whole, 
that  the  fact  that  certain  of  China's  ten  points  might 
not  seem  to  be  within  the  scope  of  these  agenda  heads, 
would  not  prevent  their  consideration  at  appropriate 
times.  In  accordance  with  this  arrangement  it  was 
agreed,  at  the  fourth  meeting  of  the  Committee  on 
Pacific  and  Far  Eastern  Questions  that  No.  1  (a)  of 
the  Chinese  proposals  had  been  embodied  in  the 
Resolutions  already  adopted;  that  No.  1  (b)  was  a 
statement  of  China's  policy  and  did  not  need  dis- 
cussion by  the  Conference ;  ^  that  3,  5,  and  8  of  the 

*  The  approval  by  the  other  Delegations  of  China's  proposals  was,  how- 
ever, given  in  a  formal  vote  which  was  taken. 


36  CHINA  AT  THE  CONFERENCE 

Chinese  proposals  related  to  the  territorial  and 
administrative  integrity  of  China;  that  numbers  2, 
6  and  7  related  to  the  headings  Open  Door  and  Con- 
cessions on  the  Agenda;  and  that  number  4  related 
to  sub-head  G  of  the  Agenda  (Status  of  Existing 
Commitments),  and  that,  therefore,  these  proposals 
would  be  considered  in  connection  with  these  agenda 
topics  as  they  were  reached. 


CHAPTER  V 

The  Root  Resolutions 


General  Discussion.  At  the  second  meeting  of  the 
Committee  of  the  Whole  on  Pacific  and  Far  Eastern 
Questions,  held  November  19,  Baron  Kato,  speaking 
in  behalf  of  the  Japanese  Delegation,  declared  that 
the  existing  difficulties  in  China  seemed  to  lie  no 
less  in  her  domestic  situation  than  in  her  external 
relations.  "  We  are  anxious,"  he  said,  "  to  see  peace 
and  unity  re-established  at  the  earliest  possible 
moment,  but  we  want  to  avoid  all  action  that  may  be 
construed  as  an  intervention  in  the  internal  affairs 
of  China.  All  that  this  Conference  can  achieve  is, 
it  seems  to  us,  to  adjust  China's  foreign  relations, 
leaving  her  domestic  situation  to  be  worked  out  by 
the  Chinese  themselves.'*  "  We  are  solicitous,"  he 
added,  **  of  making  whatever  contributions  we  are 
capable  of  towards  China's  realization  of  her  just 
and  legitimate  aspirations.  We  are  entirely  unin- 
fluenced by  any  policy  of  territorial  aggrandizement 
in  any  part  of  China.  We  adhere  without  condition 
or  reservation  to  the  principle  of  the  open  door  and 
equal  opportunity  in  China.  We  look  to  China  in 
particular  for  the  supply  of  raw  materials  essential 
to  our  industrial  life  and  for  food  stuffs  as  well.  In 
the  purchase  of  such  materials  from  China,  as  in  our 
trade  relations  with  that  country,  we  do  not  claim  any 

37 


38  CHINA  AT  THE  CONFERENCE 

special  rights  or  privileges,  and  we  welcome  fair  and 
honest  competition  with  all  nations." 

The  spokesmen  for  the  other  Delegations  responded 
with  equal  sympathy  and  general  approval  to  the 
propositions  which  the  Chinese  Delegation  had 
advanced. 

Baron  de  Cartier,  speaking  for  Belgimn,  said  his 
country  unreservedly  favored  the  policy  of  the  open 
door,  and  that  its  Government  would  ''  take  part 
willingly  in  all  the  measures  that  this  Conference 
may  adopt  to  insure  that  territorial  integrity  of 
China  and  to  furnish  her  with  the  means  to  overcome 
her  present  difficulties." 

Mr.  Balfour,  for  the  British  Empire,  said  that  **  he 
had  nothing  to  add  to  the  frequent  declarations  of 
his  Government  with  regard  to  its  support  of  the 
open  door  in  China,  the  integrity  of  China,  and  the 
desirability  of  leaving  China  to  work  out  its  own 
salvation  and  to  maintain  control  over  its  own  affairs 
and  of  substituting,  when  circumstances  warranted, 
the  normal  processes  of  law  for  extraterritoriality." 

Senator  Schanzer  stated  that  Italy  would  **  give 
its  support  to  the  solutions  that  shall  appear  to  be 
best  suited  to  assure  the  free  development  of  China 
and  to  guarantee  an  equality  in  footing  of  the  differ- 
ent nations  in  their  efforts  to  promote  the  progress 
of  China  and  of  commerce  with  that  country." 

M.  Briand  said  that  France  was  **  disposed  to  con- 
sider in  the  most  favorable  light  the  Chinese  claims 
in  their  entirety,"  but  that  in  order  to  reach  a  practi- 
cal result  it  would  be  necessary  to  make  a  thorough 
examination  of  each  claim. 


THE  EOOT  RESOLUTIONS  89 

Jonkheer  van  Karnebeek  declared  that  the  Nether- 
lands would  consider  the  principles  which  China  had 
laid  down  and  the  problems  themselves  "  from  the 
standpoint  of  the  world's  general  welfare  and  to 
examine  them  in  a  spirit  of  sympathy  and  friendship 
towards  China." 

Viscount  d'Alte,  in  behalf  of  Portugal,  said  that 
his  Delegation  was  in  full  agreement  with  the  views 
that  the  other  Delegations  had  given  expression  to. 

Mr.  Root,  of  the  American  Delegation,  then  called 
attention  to  the  fact  that,  from  the  expression  of 
views  which  had  been  given,  it  appeared  that  there 
was  a  substantial  agreement  upon  certain  fundamen- 
tal principles  and  that  he  therefore  suggested  that 
these  be  formulated  in  Resolutions  to  be  adopted  by 
the  Conference.  With  reference  to  these  Resolutions 
he  thought  that  existing  facts  should  be  recognized 
and  that  the  agreements  should  be  framed  as  expres- 
sions of  a  common  purpose,  as  evidencing  no  intention 
to  interfere  with  valid  treaties  and  agreements  which, 
after  examination,  might  be  found  to  create  existing 
rights,  but  leaving  the  possessors  of  these  rights  with 
full  powers  to  make  changes  in  them  for  the  benefit 
of  China. 

China  Defined.  The  question  ''  What  is  China?  " 
having  been  incidentally  raised,  Dr.  Koo,  of  the 
Chinese  Delegation,  said  that  the  territories  of  the 
Chinese  Republic  were  defined  in  its  Constitution 
and  that  these  were  to  be  considered  as  an  entity 
to  which  the  principle  of  territorial  integi'ity  should 
be  applied.  As  regarded  administrative  integrity,  he 
pointed  out  that  there  was  some  difference  in  the 


40  CHINA  AT  THE  CONFERENCE 

existing  status  of  administration  in  the  different 
parts  of  China;  that,  generally  speaking,  the  ad- 
ministration of  China  proper,  composed  of  the 
twenty-two  Provinces,  formed  one  unit,  and  that  of 
the  other  parts  of  the  Republic  constituted  other 
units;  but  that  this  was  an  internal  arrangement 
within  the  Republic,  and,  so  far  as  the  outside  world 
was  concerned,  the  principle  of  administrative 
integrity  should  be  confirmed  for  the  Chinese 
Republic  as  one  unit ;  and  that,  in  the  framing  of  the 
proposed  Resolutions,  these  observations  should  be 
taken  into  consideration. 

Root  Resolutions.  At  the  third  meeting  of  the 
Conomittee,^  held  November  21,  Mr.  Root  presented 
the  following  four  Resolutions  which  he  had  drafted : 

It  is  the  firm  intention  of  the  Powers  attending  this  Conference : 

(1)  To  respect  the  sovereignty,  the  independence,  and  the  terri- 
torial and  administrative  integrity  of  China. 

(2)  To  provide  the  fullest  and  most  unembarrassed  opportunity 
to  China  to  develop  and  maintain  for  herself  an  effective  and  stable 
government,  overcoming  the  difficulties  incident  to  the  change  from 
the  old  and  long-continued  imperial  form  of  government. 

(3)  To  safeguard  for  the  world,  so  far  as  it  is  within  our  power, 
the  principle  of  equal  opportunity  for  the  commerce  and  industry 
of  all  nations  throughout  the  territory  of  China. 

(4)  To  refrain  from  taking  advantage  of  the  present  conditions 
in  order  to  seek  special  rights  or  privileges  which  would  abridge 
the  rights  of  the  subjects  or  citizens  of  friendly  states  and  from 
countenancing  action  inimical  to  the  security  of  such  states. 

*  Hereafter  the  Committee  of  the  Whole  on  Pacific  and  Far  Eastern 
Questions  will  usually  be  referred  to  aa  "  the  Committee  of  the  Whole,"  or 
simply  as  "  the  Committee." 


THE  EOOT  RESOLUTIONS  41 

Upon  inquiry  upon  the  part  of  Mr.  Sze  of  the 
Chinese  Delegation,  Mr.  Root  declared  that  the  word 
"  respect "  as  used  in  the  first  resolution,  was 
intended  as  a  stronger  word  than  **  observe."  * 

Upon  inquiry  from  Baron  Kato,  of  the  Japanese 
Delegation,  Mr.  Root  said  that  the  words  "  adminis- 
trative integrity  "  **  did  not  affect  any  privileges 
accorded  by  valid  or  effective  grants;  that,  on  the 
contrary,  respect  for  the  administrative  integrity  of 
a  country  required  respect  for  the  things  that  are 
done  in  the  exercise  of  its  full  sovereignty  by  an 
independent  State."  To  this,  Mr.  Balfour,  of  the 
British  Delegation,  added  the  statement  that  this  in 
no  way  barred  the  Committee  in  future  discussions 
from  either  leaving  things  as  they  were  or  modifying 
them.  The  Chairman,  Mr.  Hughes,  also  declared 
that  **  it  was  not  contemplated  to  preclude  discussion 
of  any  question  relating  to  China ;  that  China  was  a 
sovereign  and  independent  State,  and  had  her 
administrative  autonomy  except  as  limited  by  restric- 
tions which  might  have  been  placed  upon  it  through 
valid  engagements;  that  it  might  be  possible  for  the 
Committee  to  remove  or  modify  some  of  these  restric- 
tions, but  that  those  would  be  particular  questions." 

Regarding  the  second  Resolution  it  was  agreed  that 
the  words  **  overcoming  the  difficulties  incident  to 
the  change  from  the  old  and  long-continued  imperial 
form  of  government,"  added  nothing  to  the  substance 
of  the  Resolution,  and  they  were  therefore  deleted. 

'The  ChiDese  DelegatioD  in  the  first  of  Ob  Ten  Points  had  used  the 
phrase  "  respect  and  observe." 


43  CHINA  AT  THE  CONFERENCE 

Regarding  the  third  Resolution,  it  was  declared  by 
Mr.  Root  that  the  words  **  so  far  as  it  is  within  our 
power  "  were  used  in  order  to  make  it  certain  that  no 
nation  was  attempting  to  do  anything  outside  its  com- 
petency. Upon  the  suggestion  of  Mr.  Balfour,  it  was 
then  agreed  that  the  wording  should  be  so  changed 
as  to  make  the  Resolution  read  that  the  Powers  would 
"  use  their  influence  for  the  purpose  of  effectually 
establishing  and  maintaining  the  principle  of  equal 
opportunity, ' '  etc. 

As  to  the  fourth  Resolution,  Mr.  Root  pointed  out 
that  the  phrase  ''  abridge  the  rights  ''  did  not  refer 
exclusively  to  a  particular  vested  right  of  an  indi- 
vidual because  the  nations  had  treaties  with  China 
which  authorized  them  or  their  citizens  to  acquire 
further  rights; — "that  it  was  broader  and  went 
beyond  that  particular  case  having  to  deal  with  cases 
where  there  were  rights  guaranteed  by  China  and 
protected  by  these  treaties ;  that  any  attempt  to  obtain 
rights  for  one  Power  that  would  detract  from  rights 
already  vested  in  the  nationals  of  another  Power, 
by  some  valid  engagement  with  the  government  of 
China,  would  constitute  an  abridgement."  In  other 
words  that,  in  the  future,  no  nation  might  attempt 
to  do,  what  Japan  in  1915  by  her  Twenty-One  De- 
mands had  done, — to  obtain  rights  that  would  be  in 
derogation  of  the  existing  rights  of  the  other  Treaty 
Powers. 

As  finally  adopted  by  the  Committee  and  later 
approved  by  the  Conference  at  its  fourth  plenary 
session,  held  December  10,  1921,  and  embodied  in  a 
draft  treaty  to  which  all  the  nine  Powers  gave  their 


THE  EOOT  RESOLUTIONS  43 

assent  at  the  sixth  plenary  session  on  February  4, 
the  Root  Resolutions  ran  as  follows : 

It  is  the  firm  intention  of  the  Powers  attending  this  Conference 
hereinafter  mentioned,  to  wit,  the  United  States  of  America, 
Belgium,  the  British  Empire,  France,  Italy,  Japan,  the  Netherlands 
and  Portugal: 

1.  To  respect  the  sovereignty,  the  independence  and  the  territorial 
and  administrative  integrity  of  China. 

2.  To  provide  the  fullest  and  most  unembarrassed  opportunity  to 
China  to  develop  and  maintain  for  herself  an  effective  and  stable 
government. 

3.  To  use  their  influence  for  the  purpose  of  effectually  establish- 
ing and  maintaining  the  principle  of  equal  opportunity  for  the 
commerce  and  industry  of  all  nations  throughout  the  territory  of 
China. 

4.  To  refrain  from  taking  advantage  of  the  present  conditions  in 
China,  in  order  to  seek  special  rights  or  privileges  which  would 
abridge  the  rights  of  the  subjects  or  citizens  of  friendly  States  and 
from  countenancing  action  inimical  to  the  security  of  such  States. 

With  regard  to  the  fourth  of  these  Resolutions  the 
observation  may  be  made  that  it  was  distinguishable 
from  the  other  three  Resolutions  in  that  it  w^as  not 
based,  as  were  they,  upon  statements  previously  made 
in  the  Committee  by  the  several  Delegations,  and 
that  thus,  in  fact,  Mr.  Root  had  received  no  specific 
instruction  from  the  Committee  to  frame  and  intro- 
duce it.  The  Resolution  therefore  represented  a 
proposition  to  which  the  Powers  were  asked  to  com- 
mit themselves  which  was  initiated  by  the  American 
Delegation  upon  its  own  responsibility.  For  this 
action  China  owes  a  debt  of  gratitude  to  the  Ameri- 
can Government,  for  its  adoption  at  the  very  outset 
of  the  Conference  meant  a  decisive  victory  of  China, 
tending  as  it  did,  to  allay  its  fears  that  the  Powers 


44  CHINA  AT  THE  CONFERENCE 

at  the  Conference  might  propose  forms  of  concerted 
action  that  would  mean  further  encroachments  upon 
China's  administrative  autonomy. 

The  Ten  Points  of  China  and  the  Root  Resolutions 
had  fallen  under  the  heading  of  the  Agenda  *'  Ques- 
tions Relating  to  China;  Principles  to  be  Applied." 
The  Points  having  been  presented  and  the  Root 
Resolutions  adopted,  the  Committee  was  prepared  to 
discuss  the  second  of  the  Agenda  heads — "  Appli- 
cations. ' '  For  purposes  of  convenience  it  was  decided 
that  the  two  sub-heads  of  this  chief  head  **  Terri- 
torial Integrity  "  and  "  Administrative  Integrity  '' 
might  be  considered  together  and  the  Chinese  Dele- 
gation was  asked  to  bring  forward  the  specific 
matters  coming  under  these  titles  which  it  wished  to 
have  discussed. 


CHAPTER  VI 

China  ^s  Territorial  and  Administrative  Integrity 


Before  proceeding  to  an  examination  of  the  matters 
presented  by  the  Chinese  Delegation  under  these  two 
heads  of  the  Agenda,  it  will  be  advisable  to  consider 
for  a  moment  the  significance  of  these  terms  and 
their  relation  to  the  more  comprehensive  term 
**  Sovereignty." 

Sovereignty.  This  term  is  employed  in  both  Con- 
stitutional (or  national)  and  International  Jurispru- 
dence. In  International  Law  the  concept  indicated 
by  the  word  is  practically  synonymous  with  indepen- 
dence; that  is,  a  State  which  is  recognized  by  other 
States  as  Independent  and  as  a  member  of  the 
"  Family  of  Nations,"  is  conceded  to  have  the  right, 
free  from  foreign  interference,  to  exercise  the  rights 
which,  as  a  sovereign  State  in  a  constitutional  sense, 
it  is  conceded  by  constitutional  law  to  have  over  its 
own  territory  and  the  persons  living  or  sojourning 
within  its  territorial  limits.  To  fix  the  meaning  of 
the  term  Sovereignty  it  is  therefore  necessary  to  first 
determine  its  constitutional  implications. 

Under  all  systems  of  modem  public  law  a  State, 
viewed  as  a  sovereign  political  entity,  is  regarded  as 
the  possessor  of  a  legally  supreme  will  which  is, 
therefore,  the  source  of  all  the  legal  rights,  public  and 
private,  which  exist  within  its  territory,  and  which 

45 


40  CHINA  AT  THE  CONFEKENCE 

can  be  claimed  by  those  over  whom  its  jurisdiction 
extends.  This  absolute  principle,  has,  perhaps,  never 
been  better  stated  than  by  the  great  American  jurist 
and  judge,  Chief  Justice  Marshall.  In  the  case  of 
The  Exchange,  decided  in  1812  by  the  United  States 
Supreme  Court,  Marshall  said: 

The  jurisdiction  of  the  nation  within  its  own  country  is  neces- 
sarily exclusive  and  absolute.  It  is  susceptible  of  no  limitation  not 
imposed  by  itself.  Any  restriction  upon  it,  deriving  validity  from 
an  external  source,  would  imply  a  diminution  of  its  sovereignty  to 
the  extent  of  the  restriction,  and  an  investment  of  that  sovereignty 
to  the  same  extent  in  that  Power  which  would  impose  such  restric- 
tion. All  exceptions,  therefore,  to  the  full  and  complete  power  of 
a  nation  within  its  own  territory,  must  be  traced  up  to  the  consent  of 
the  nation  itself.    They  can  flow  from  no  other  source. 

Thus,  as  Marshall  goes  on  in  this  case  to  show, 
even  the  privileges  of  extraterritoriality  which,  in 
all  the  States  of  the  civilized  world,  are  enjoyed  by 
diplomatic  officials,  and  which  are  strenuously  in- 
sisted upon  by  their  home  governments,  are  declared 
to  owe  their  existence  to  the  implied  consent  of  the 
States  within  which  such  international  rights,  or 
other  privileges,  are  claimed. 

International  Law,  as  has  been  said,  recognizes 
this  principle  of  constitutional  law  and  therefore  lays 
down  the  rule  that,  except  where  permission  has 
been  explicitly  or  by  necessary  implication  granted 
by  a  nation,  other  nations  will  respect  its  exclusive 
jurisdiction  over  its  own  territory,  reserving  only  the 
right  upon  their  part  to  intervene,  in  extreme  cases, 
when  the  State  in  question  has  made  a  clearly  unjust 
and  offensive  use  of  its  legal  powers. 


CHINA'S'  INTEGRITY  47 

The  generality  of  the  foregoing  principle  of  Inter- 
national Law  leads  to  another  fundamental  doctrine 
of  international  jurisprudence,  namely,  the  legal 
equality  of  all  members  of  the  Family  of  Nations. 
Thus  Oppenheim,  the  eminent  English  authority, 
says: 

In  entering  into  the  Family  of  Nations  a  State  comes  as  an  equal 
to  equals;  it  demands  that  certain  consideration  be  paid  to  its 
dignity,  the  retention  of  its  independence,  its  territory  and  its 
personal  supremacy.  Recognition  of  a  State  as  a  member  of  the 
Family  of  Nations  contains  recognition  of  such  State's  equality, 
dignity,  independence,  and  territorial  and  personal  supremacy. 
The  States  are  International  Powers  because  they  recognize  these 
qualities  in  one  another  and  recognize  their  responsibility  for  viola- 
tions of  these  qualities.* 

Because  of  its  very  sovereignty  and  independence 
every  State  has  the  right,  acting  in  conformity  with 
the  provisions  of  its  own  constitutional  law,  to  enter 
into  agreements  with  other  States  providing  that  it 
win  permit  those  other  States,  under  specified  condi- 
tions or  limitations,  to  exercise  within  its  own  terri- 
tory, certain  political  powers.  These  agreements, 
owing  their  existence  and  continuance  to  the  will  of 
the  agreeing  State,  are  not  in  derogation  of  that 
State's  sovereignty  and  independence.  There  are, 
therefore,  no  a  priori  limits  to  the  extent  to  which  a 
State  may  thus  go  in  permitting  other  States  to 
exercise  jurisdiction,  through  their  own  officials, 
within  its  own  area.  Thus  a  given  State  may  not 
only  agree  that  it  will  itself  exercise  certain  of  the 
powers  only  in  a  specified  way,  but  may  consent  that 

'International  Law,  2d  cd.,  p.  113. 


48  CHINA  AT  THE  CONFEEENCE 

certain  of  its  own  public  revenues  shall  be  supervised 
or  administered  by  officials  of  other  States,  or  that 
their  citizens,  being  within  its  borders,  shall  be  legally- 
amenable  only  to  the  orders  of  tribimals  maintained 
by  these  other  States,  which  tribunals  may,  according 
to  the  understanding  entered  into,  apply  in  such  cases 
the  local  law  or  that  of  their  own  countries. 

It  does  not  need  to  be  said  that  only  imperative 
necessity  disposes  a  State  to  grant  to  other  States 
the  right  to  exercise  jurisdictional  powers  within  its 
own  territory,  and  that  that  State  is  justified  in 
seeking  at  the  first  opportunity  to  obtain  from  other 
States  a  release  from  the  concessions  which  it  has 
made.  It  would  seem,  also,  but  an  act  of  interna- 
tional amity  and  good  will  that  those  States  should 
yield  to  this  legitimate  desire  as  soon  as,  in  their 
judgment,  objective  circumstances  reasonably  justify 
their  doing  so.  In  other  words,  their  own  selfish 
interests  or  desire  for  authority  does  not  justify  them 
in  retaining  these  jurisdictional  powers  in  another 
State  which  is  their  technical  equal  as  a  member  of 
the  Family  of  Nations,  when  the  conditions  which 
originally  led  to  their  concession  no  longer  exist. 

Territorial  Integrity.  To  the  term  ''  Territorial 
Integrity  '*  two  meanings  may  properly  be  given. 

(1)  In  the  first  place  it  means  that,  without  its 
consent,  no  portion  of  the  territory  belonging  or  sub- 
ject to  the  jurisdiction  of  a  sovereign  and  interna- 
tionally independent  State,  may  justly  be  taken  from 
it  by  other  States.  This  consent  may  be  voluntarily 
given  by  the  State,  as,  for  example,  when  it  cedes  by 


CHINA'S'  INTEGRITY  49 

way  of  sale  or  exchange,  or  for  any  other  reason 
deemed  good  and  sufficient,  a  portion  of  its  soil  to 
another  State,  or  recognizes  the  political  independ- 
ence of  any  of  its  colonies  or  dependencies  or  of  its 
own  local  subdivisions ;  or  the  consent  may  be  wrung 
from  it  at  the  conclusion  of  an  unsuccessful  war. 

(2)  In  the  second  place  "  Territorial  Integrity  " 
has  reference  to  the  fact  of  the  exclusiveness  of 
political  jurisdiction  which  a  State  has  over  its  own 
territory.  As  thus  used,  the  **  Territorial  Integrity  " 
of  a  State  is  violated  whenever,  without  its  consent, 
any  foreign  Power  exercises  jurisdiction  within  its 
borders,  or  when,  what  amounts  to  the  same  thing,  it 
gives  official  support  to  the  refusal  of  its  nationals  to 
obey  the  laws  of  the  local  sovereign. 

Thus,  in  this  sense  of  the  term,  in  the  case  of  China, 
her  **  Territorial  Integrity  "  is  violated  by  the  main- 
tenance, without  her  consent,  of  foreign  troops  upon 
her  soil;  by  the  establishment  and  operation  within 
her  borders  of  foreign  post-offices;  by  the  erection 
and  operation  of  wireless  stations ;  by  the  refusal  of 
a  foreign  Government  to  permit  postal  parcels  enter- 
ing China  to  be  examined  by  the  Chinese  customs 
officials;  or,  by  the  practice  of  certain  Legations  at 
Peking  in  granting  asylum  to  fugitives  from  Chinese 
justice. 

Due  respect  to  China's  territorial  integrity  is  not 
paid  by  other  nations  which  seek  to  exercise  a  politi- 
cal influence  or  to  claim  without  treaty  right  prefer- 
ential or  monopolistic  economic  interests  within  spe- 
cified geographical  areas  of  her  territory,  for  such  a 
claim  necessarily  impairs  the  supreme  and  exclusive 
6 


60  CHINA  AT  THE  CONFERENCE 

authority  of  China  within  such  areas,  or  limits  her 
freedom  to  develop  them  economically  and  industri- 
ally according  to  her  ovm  judgment  in  specified  cases 
as  they  arise.  Thus  the  claims  of  various  of  the 
Treaty  Powers  to  *'  Spheres  of  Interest ''  and  "  Spe- 
cial Interests  ''  in  China  are,  and  have  been  recog- 
nized to  be,  in  derogation  of  China's  Territorial 
Integrity.  That  this  is  so  has  been  repeatedly  de- 
clared by  Great  Britain  and  the  United  States  in  their 
communications  with  regard  to  the  Open  Door,  and 
especially  with  reference  to  the  efforts  made  by  Japan 
to  have  Manchuria  and  Eastern  Inner  Mongolia 
excepted  from  the  operations  of  the  new  Consortium. 
The  Territorial  Integrity  of  a  State  is  limited,  even 
if  not  violated,  when  it  is  compelled  to  lease  portions 
of  its  area  to  other  Powers,  or  to  grant  to  them  any 
other  form  of  extraterritorial  jurisdiction.  Thus,  in 
the  case  of  China,  the  existence  of  the  leased  areas 
of  Weihaiwei,  Liaotung  Peninsula,  Kowloon,  and 
Kwangchouwan ;  the  municipal  ''  Settlements  "  at 
Shanghai  and  the  "  Concessions  "  at  other  of  her 
cities;  and  the  extraterritorial  rights  enjoyed  by 
foreigners  throughout  her  limits,  are  all  limitations 
upon  her  Territorial  Integrity.' 

*In  hie  note  of  July  3,  1900,  to  the  Powers,  Secretary  Hay  referred  to 
the  poHcy  of  the  United  States  as  one  to  preserve  Chinese  territorial  and 
administrative  "  Entity."  It  would  not  appear,  however,  that  it  was 
intended  that  the  word  should  have  any  other  effect  than  would  have 
followed  from  the  use  of  the  term  "  integrity."  It  is  probable  that  Secre- 
tary Hay  used  the  word  entity  because  of  some  special  feeling  held  by 
him  that,  under  the  given  circumstances,  it  was,  as  a  matter  of  verbal 
nicety,  the  appropriate  term  to  use.  As  to  this  see  the  article  by  J.  B. 
Moore,  "  Hay's  Work  in  Diplomacy,"  in  the  American  Review  of  Reviews, 
August,  1905. 


CHINA'S  INTEGRITY  51 

Administrative  Integrity.  The  terms  *'  administra- 
tion "  and  **  administrative  ''  have,  in  political 
science,  two  distinct  meanings.  In  the  one,  which  is 
restrictive,  they  relate  to  the  operations  of  the  execu- 
tive branch  of  a  government ;  in  the  other,  they  refer 
generally  to  all  the  operations  of  a  government,  that 
is,  to  the  actual  conduct  of  the  affairs  of  all  of  its 
departments — ^legislative,  judicial,  and  executive. 

It  is  quite  clear  that,  as  used  in  the  Agenda  for  the 
Washington  Conference,  the  term  Administrative 
Integrity  had  reference  to  all  the  operations  of  the 
Chinese  Government.  This  had  been  the  meaning 
many  times  attached  to  it  by  the  Powers  in  their 
communications  with  each  other  with  reference  to 
China  and,  therefore,  it  was  understood  that  this 
was  the  idea  of  the  American  Government  when  it 
employed  the  term  in  its  Agenda  for  the  Conference. 

This  being  established,  it  is  clear  that  any  restraint 
placed  upon  the  Government  of  China  in  the  exercise 
of  its  sovereign  powers  would  be  treated  as  pro  tanto 
an  impairment  of  its  Administrative  Integrity.  The 
restraints  based  upon  treaty  or  other  agreements 
which  China  had  made,  were  to  be  regarded  as  limi- 
tations; those  having  no  contractual  basis,  as  viola- 
tions of  this  Integrity. 

With  reference  to  its  executive  operations  or 
administrative  powers  within  the  narrower  sense  of 
the  word,  China's  Administrative  Integrity  is 
impaired  when  one  of  its  services,  as,  for  example, 
its  maritime  customs  or  its  salt  tax,  is  under  foreign 
control  or  supervision.  With  regard  to  its  legislative 
functions,  China's  Administrative  Integrity  is  im- 


52  CHINA  AT  THE  CONFERENCE 

paired  when  she  is  not  permitted  to  determine  her 
policies,  fiscal  or  of  other  character,  according  to  her 
own  judgment  as  to  what  her  interests  require.  Thus, 
in  so  far  as  China  is  not  permitted  to  fix  the  rates  of 
her  maritime  customs,  or  to  vary  these  rates  accord- 
ing to  the  commodities  to  which  they  apply,  her 
Administrative  Integrity  upon  its  legislative  side,  is 
seriously  limited.  So,  also,  the  existence  of  foreign 
**  Settlements  "  and  **  Concessions  "  in  various  of 
her  Treaty  Ports,  operate  as  a  limitation  upon  her 
local  administrative  powers.  Furthermore,  the 
whole  system  of  extraterritorial  jurisdiction  is  in 
derogation  of  her  exclusive  right  as  the  local  sover- 
eign to  administer  justice. 

It  is  thus  seen  that  the  concepts  of  Territorial 
Integrity  and  Administrative  Integrity  are  so  closely 
related  that,  in  very  many  cases,  a  violation  or  limi- 
tation of  the  one  is  almost  necessarily  a  violation  or 
limitation  of  the  other.  It  was  therefore  almost 
unavoidable  that,  in  the  proceedings  of  the  Confer- 
ence, the  two  subjects  of  Territorial  Integrity  and 
Administrative  Integrity  should  be  treated  as  a  single 
indivisible  topic. 

The  matters  which  the  Chinese  Delegation  brought 
forward  under  these  two  heads  were  the  following: 
Tariff  Autonomy,  Extraterritoriality,'  Leased  Areas, 
Spheres  of  Interest,  Foreign  Troops,  Police  Boxes, 
Postal  Services,  Electrical  Communications  upon  her 
soil,  and  the  Agreements  and  Notes  of  May  25,  1915. 

*  Under  this  title  was  of  course  included  municipal  concessions  and 
settlements  which  would  be  expected  automatically  to  disappear  with  the 
abrogation  of  extraterritorial  rights  in  China. 


CHINA'S  INTEGRrrY  53 

In  order  that  the  consideration  of  these  subjects 
might  be  expedited,  the  Conference  or  Committee  did 
not  attempt  fully  to  dispose  of  one  of  these  topics 
before  another  was  taken  up.  That  is,  several  were 
under  consideration  at  the  same  time,  but  in  different 
sub-committees  which  reported  from  time  to  time  to 
the  Committee  of  the  Whole.  The  discussions  that 
were  had  and  the  actions  taken  can,  however,  be  most 
clearly  presented  if  we  take  up  these  subjects  one 
after  another,  and  show  as  to  each  of  them  what  was 
done  regarding  them. 

China's  Rights  as  a  Neutral.  The  eighth  of  the 
Points  presented  by  the  Chinese  Delegation  to  the 
Committee  on  November  16  read : 

China's  rights  as  a  neutral  are  to  be  fully  respected  in  future  wars 
to  which  she  is  not  a  party. 

At  the  thirteenth  meeting  of  the  Committee  of  the 
Whole,  Dr.  Wang,  stated  that  this  proposition  was 
an  obvious  one  and  clearly  embraced  within  the  first 
of  the  four  Root  Resolutions  that  had  already  been 
adopted.  However,  in  view  of  the  fact  that,  in  the 
past,  China's  rights  as  a  neutral  had  been  greviously 
disregarded, — conspicuously  in  the  Russo-Japanese 
War,  the  land  operations  of  which  were  carried  on 
wholly  upon  Chinese  soil  and  in  the  recent  war  when 
Japan  had  landed  her  troops  at  a  point  one  hundred 
and  fifty  miles  from  their  military  objective — ^the 
leased  area  of  Kiaochow, — he  felt  that  it  was  appro- 
priate that  the  Powers  should  pledge  themselves  to 
this  proposition. 


54  CHINA  AT  THE  CONFERENCE 

Secretary  Hughes,  Mr.  Balfour,  and  M.  Viviani 
said  that  their  governments  fully  concurred  in  the 
Chinese  declaration  of  principle.  Mr.  Hanihara, 
speaking  for  Japan,  said  that  he  associated  himself 
with  these  views,  but  added:  **  No  country  now 
desires  to  assail  the  neutrality  of  another  country, 
but  when  a  coimtry  is  not  in  a  position  to  fulfill  its 
obligations  as  a  neutral,  then  the  other  Powers  must 
defend  themselves."  The  point  of  this  remark,  in 
view  of  the  circumstances  under  which,  in  1915, 
Japan  had  violated  China's  rights  as  a  neutral,  is 
somewhat  obscure. 

Without  further  discussion,  China's  proposition 
was  unanimously  adopted,  but,  as  finaUy  adopted  by 
the  Conference  at  its  fourth  plenary  session,  held 
December  10,  and  as  embodied  as  Article  VI  in  the 
Nine  Power  Treaty  Relating  to  Principles  and  Poli- 
cies to  be  Followed  in  Matters  Concerning  China,  the 
resolution  was  made  to  read : 

The  Contracting  Powers,  other  than  China,  agree  fully  to  respect 
China's  rights  as  a  neutral  in  time  of  war  to  which  China  is  not  a 
party ;  and  China  declares  that  when  she  is  a  neutral  she  will  observe 
the  obligations  of  neutrality. 


CHAPTER  VII 

Tariff  Autonomy 


Chinese  Statement.  The  matter  of  obtaining  for 
China  a  fuller  control  of  her  own  maritime  Customs 
as  regards  the  rates  to  be  charged  and  their  appor- 
tionment among  different  classes  of  articles  was  first 
raised  at  the  fourth  meeting  of  the  Committee,  but 
China's  proposals  with  regard  to  this  subject  were 
not  formally  presented  to  the  Committee  until  its 
fifth  meeting  on  November  23,  when  Dr.  Koo  made 
in  substance  the  following  statement :  ^ 

Prior  to  the  year  1842,  China  had  enjoyed  the  full  right  of  fixing 
her  customs  duties.  But  in  that  year  and  in  the  subsequent  years, 
she  had  made  treaties  with  Great  Britain,  France  and  the  United 
States,  in  which  for  the  first  time  a  limitation  was  imposed  on  this 
full  right.  The  rule  of  5  per  cent  ad  valorem  was  thereby  estab- 
lished, and  later  a  schedule  was  fixed  upon  the  basis  of  the  current 
prices  then  prevailing.  In  the  years  preceding  1858,  prices  began 
to  drop,  and  the  5  per  cent  customs  duty  collected  appeared  conse- 
quently to  be  in  excess  of  the  5  per  cent  prescribed.  A  revision  was 
therefore  asked  for  by  the  Treaty  Powers  and  was  effected  in  1858. 
From  that  time  until  1902,  however,  as  prices  mounted  and  the 
Chinese  Government  had  been  receiving  less  than  the  6  per  cent 
rate,  no  request  was  made  on  the  part  of  the  Treaty  Powers  for  a 
revision.  If  the  Chinese  Government  did  not  at  that  time  press  for 
a  revision,  it  was  only  because  the  needs  of  the  Government  were 

*  See  "  Conference  on  the  Limitation  of  Armament "  published  by  the 
American  Government  as  Senate  Document  No.  126,  67th  Congress,  2d  ses- 
■ion,  pp.  469-473. 

65 


66  CHINA  AT  THE  CONFERENCE 

then  comparatively  few  and  the  revenues  collected,  small  as  they 
were,  were  not  inadequate  to  meet  the  requirements. 

It  was  only  in  1902,  as  a  result  of  the  Boxer  uprising,  that 
another  revision  was  made  with  a  view  to  raising  suflScient  revenue 
to  meet  the  newly  imposed  obligations  arising  out  of  the  protocol  of 
1901.  In  that  tariff,  however,  the  rates  were  calculated  on  the 
basis  of  the  average  prices  of  1897-1899,  the  then  prevailing  prices 
not  being  taken  into  account.  But  the  revenue  collected  according 
to  this  increased  tariff  was  hardly  sufficient  to  meet  the  obligations 
of  the  indemnity.  In  1912,  another  attempt  was  made  to  revise  the 
tariff  in  order  to  bring  it  more  in  accord  with  actual  prices.  It 
proved  to  be  a  failure,  as  the  unanimous  consent  of  some  16  or  17 
Powers  was  not  obtained.  It  was  only  after  six  years  of  protracted 
negotiation  that  another  revision  was  effected  in  1918.  The  pur- 
pose of  this  revision  was  to  increase  the  rate  to  an  effective  5  per 
cent,  but  the  resulting  tariff,  which  was  now  in  force,  yielded  only 
3^  per  cent  in  comparison  with  the  prices  of  commodities  actually 
prevailing. 

Dr.  Koo  asked  on  behalf  of  the  Chinese  delegation  for  the  re- 
covery by  China  of  the  right  to  tariff  autonomy.  He  said  that  in 
the  first  place  the  existing  regime  in  China  constituted  an  infringe- 
ment of  the  Chinese  sovereign  right  to  fix  the  tariff  rate  at  her  own 
discretion — a  right  enjoyed  by  the  States  throughout  the  world. 

Again,  it  deprived  China  of  her  power  to  make  reciprocity  ar- 
rangements with  the  Powers  and  ran  counter  to  the  principle  of 
equality  and  mutuality.  While  foreign  goods  imported  into  China 
had  to  pay  only  5  per  cent  of  import  tax,  goods  of  Chinese  origin 
imported  to  foreign  countries  had  to  pay  customs  duties  of  maxi- 
mum rate.  For  instance,  Chinese  tea  imported  to  the  United 
Kingdom  had  to  pay  1  shilling  per  pound,  which  meant  25  per  cent, 
as  the  price  there  was  about  4  shillings  per  pound ;  Chinese  tobacco 
on  importation  into  Japan  had  to  pay  350  per  cent;  raw  silk  into 
Japan,  30  per  cent ;  and  manufactured  silk  into  the  United  States, 
35  to  60  per  cent.  Such  a  regime  constituted  a  serious  impediment 
to  the  Chinese  export  trade  and  to  China's  economic  development. 

Moreover,  a  uniform  rate  for  all  kinds  of  commodities  without 
latitude  to  differentiate  rates  between  luxuries  and  necessaries  had 


TARIFF  AUTONOMY  57 

obvious  disadvantages.  For  example,  it  was  evident  that  machinery 
and  similar  merchandise  so  much  needed  by  China  ought  to  pay  a 
low  rate,  while  on  the  other  hand  luxuries,  such  as  cigars  and 
cigarettes,  should  be  more  heavily  taxed,  as  much  for  mitigating  or 
preventing  the  injurious  effects  on  the  morals  and  social  habits 
of  the  people  from  the  use  of  these  luxuries  as  for  raising  more 
revenue.  The  Chinese  tariff  was  therefore  not  a  scientific  one,  as 
it  failed  to  take  into  consideration  the  economic  and  social  as  well 
as  the  fiscal  needs  of  the  Chinese  people. 

Continuing,  Dr.  Koo  said  that  the  present  tariff  caused  a  serious 
loss  of  revenue  to  the  Chinese  exchequer.  Customs  duties  formed 
one  of  the  most  important  sources  of  revenue  of  a  country.  Great 
Britain,  for  example,  received  12  per  cent  out  of  her  total  revenue ; 
France,  15  per  cent;  United  States,  35  per  cent.  (In  giving  these 
figures,  he  said  he  would  be  glad  to  hear  his  colleagues  correct  him, 
if  they  were  not  accurate  to  date.)  The  Chinese  customs  revenue, 
on  the  other  hand,  played,  for  nearly  100  years,  a  comparatively 
insignificant  part  in  the  national  revenue.  Besides,  a  large  part  of 
China's  customs  revenue  was  pledged  to  meet  various  foreign  loans 
secured  thereon,  and  this  fact  again  reduced  the  amount  available 
for  the  needs  of  the  Government. 

Furthermore,  under  the  existing  customs  regime  it  was  exceed- 
ingly difficult  to  revise  the  tariff,  even  for  the  modest  purpose  of 
raising  it  to  an  effective  5  per  cent.  The  revision  of  1902  was  the 
first  revision  in  44  years,  and  the  resulting  tariff  yielded  only 
2^  per  cent  in  comparison  with  the  market  value  of  the  imports, 
i.  e.,  2^  per  cent  less  than  what  could  have  been  collected  if  the 
tariff  schedule  had  been  revised  to  date.  The  revision  of  1918,  as 
was  pointed  out,  was  effected  only  after  six  years  of  negotiation, 
and  being  based  on  the  average  prices  of  1912-1916,  the  new  tariff  of 
1918  was  yielding  only  3^  per  cent.  But  even  an  effective  5  per  cent 
import  tariff,  which  would  probably  produce  an  additional  revenue 
of  nearly  15,000,000  taels,  might,  however,  still  prove  inadequate 
to  meet  the  manifold  needs  of  the  Chinese  Government,  such  as 
those  for  education,  road  building,  sanitation,  and  public  welfare. 

In  view  of  the  foregoing  reasons,  Dr.  Koo  asked  the  Powers  to 
agree  to  the  restoration  to  China  of  her  tariff  autonomy.    In  mak- 


58  CHINA  AT  THE  CONFERENCE 

ing  this  request,  the  Chinese  Government  entertained  no  desire  to 
interfere  with  the  present  administration  of  the  maritime  customs, 
which  was  generally  considered  to  be  efficient  and  satisfactory,  nor 
to  interfere  with  the  devotion  of  the  funds  of  the  maritime  customs 
to  the  hquidation  of  foreign  loans  secured  thereon.  What  he  had 
uppermost  in  mind  in  asking  for  the  recognition  of  China's  tariff 
autonomy  was  the  right  to  fix  and  differentiate  the  tariff  rates.  As 
the  establishment  of  such  a  new  regime  would  require  time,  it 
should  come  into  force  only  after  a  period  to  be  agreed  upon. 
Before  that  period,  a  maximum  rate  should  be  agreed  to,  and 
within  that  maximum  rate  China  should  enjoy  full  freedom  of 
differentiating  rates,  for  example  between  luxuries  and  necessaries. 
But  negotiation  for  the  purpose  of  fixing  a  maximum  rate  might 
take  months,  and  as  the  present  Chinese  financial  condition  needed 
some  immediate  relief,  it  was  proposed  that  on  and  from  January  1, 
1922,  the  Chinese  import  tariff  should  be  raised  to  12^  per  cent, 
a  rate  mentioned  in  the  Chinese  treaties  with  Great  Britain,  the 
United  States,  and  Japan. 

Discussion.  Mr.  Root  stated  that  the  treaty  of  1903 
between  the  United  States  and  China  contained  a 
provision  concerning  the  abolition  of  likin  and  pro- 
ceeded to  read  Article  IV  of  the  treaty  as  follows : 

The  Chinese  Government,  recognizing  that  the  existing  system 
of  levying  dues  on  goods  in  transit,  and  especially  the  system  of 
taxation  known  as  likin,  impedes  the  free  circulation  of  com- 
modities to  the  general  injury  of  trade,  hereby  undertakes  to  aban- 
don the  levy  of  likin  and  all  other  transit  dues  throughout  the 
Empire  and  to  abolish  the  offices,  stations,  and  barriers  maintained 
for  their  collection  and  not  to  establish  other  offices  for  levying 
dues  on  goods  in  transit.  It  is  clearly  understood  that  after  the 
offices,  stations,  and  barriers  for  taxing  goods  in  transit  have  been 
abolished  no  attempt  shall  be  made  to  re-establish  them  in  any 
form  or  imder  any  pretext  whatsoever. 

Continuing,  Mr.  Root  stated  that  the  treaties  of 
1902  and  1903  between  China  and  Great  Britain  and 


TARIFF  AUTONOMY  59 

Japan,  respectively,  contained  provisions  of  similar 
effect,  and  that  the  increase  in  customs  duties  to 
12  J  per  cent,  as  proposed  in  those  treaties,  was  clearly 
intended  as  a  consideration  for  the  abolition  of  likin, 
and  inquired  of  Mr.  Koo  what  proposal,  if  any,  he 
was  ready  to  make  with  regard  to  **  likin/' 

Mr.  Koo  answering  said  that  likin  was  a  handicap 
to  the  internal,  as  well  as  the  external  trade  of  China, 
and  that  the  substantial  classes  in  China  favored  its 
abolition.  He  added  that  the  Government  would  be 
prepared  to  abolish  likin  if  tariff  autonomy  were 
granted,  and  if  it  were  possible  to  agree  on  an  in- 
crease in  customs  duties,  which  would  compensate  for 
its  abolition.  He  considered  the  original  proposition 
of  an  increase  to  12J  per  cent  as  hardly  sufficient  to- 
day, in  view  of  the  great  increase  in  public  expenses. 

Senator  Underwood  called  attention  to  the  fact 
that  stable  conditions  in  China  would  be  for  the  bene- 
fit of  all  those  nations  who  did  business  with  China 
and  that  such  conditions  were  desirable.  Pointing  out 
that  it  was  recognized  as  axiomatic  that  no  govern- 
ment can  function  effectively  without  revenue,  he 
said  that  the  committee,  in  working  to  secure  ample 
revenue  for  China,  was  laying  the  cornerstone  for 
stabilization  in  that  country.  He  remarked  that  he 
did  not  consider  the  transportation  tax  as  a  tax  on 
imports  and  added  that  the  United  States  had  had  a 
similar  tax.  Continuing,  Senator  Underwood  pointed 
out  the  necessity  of  refraining,  as  far  as  possible, 
from  disturbing  existing  trade  conditions :  readjust- 
ment and  revision  should  be  made  with  a  view  to 
avoiding  any  disturbance  of  established  channels  of 


60  CHINA  AT  THE  CONFERENCE 

trade.  It  seemed  advisable,  in  view  of  the  efficiency 
of  the  present  system  of  administration,  that  it  should 
not  be  disturbed.  In  his  opinion  no  arbitrary  rates, 
such  as  12 J  per  cent,  should  be  decided  upon,  but 
rather  such  changes  should  be  made  as  to  assure  a 
revenue  sufficient  to  keep  China  out  of  debt.  It  was 
important  that  every  cent  collected  should  go  to  meet 
the  expenses  of  government.  He  added  that  Mr. 
Koo^s  suggestion  that  China  should  have  the  right  to 
charge  more  duty  on  luxuries  than  on  necessities  was 
a  reasonable  one,  but  argued  that  a  simple  and  not  a 
complicated  tariff  was  desired.  Finally,  the  needs  of 
the  Government  should  be  clearly  known  and  the 
customs  levies  changed  to  meet  them. 

Sub-Committee  Discussions.  The  matter  of  Tariff 
Autonomy  for  China  having  thus  been  presented  and 
discussed  in  general  terms  by  the  Committee,  it  was 
decided  that,  for  its  further  and  detailed  considera- 
tion, a  sub-committee*  should  be  appointed. 

Six  meetings  of  this  sub-committee  were  held. 

At  the  first  meeting,  held  November  29,  Dr.  Koo 
presented  the  following  specific  proposals  on  behalf 
of  China : 

1.  The  present  import  duty  of  5  per  cent  shall  be  forthwith  in- 
creased to  12|  per  cent. 

2.  China  agrees  to  abolish  likin  on  January  1,  1924,  and  the 
Powers  agree  to  put  in  force  on  the  same  day  the  levy  of  certain 

*  Upon  this  sub-committee  the  following  were  appointed  by  the  Chairman 
of  the  Committee:  Senator  Underwood  (Chairman)  for  the  United  States; 
Baron  de  Cartier,  with  M.  Cattier  as  alternate,  for  Belgium;  Sir  Robert 
Borden,  with  Sir  John  Jordan  as  alternate,  for  the  British  Empire ;  Dr.  Koo, 
for  China;  M.  Serraut,  for  France;  Senator  Albertini,  with  Signor  Fileti 
as  alternate,  for  Italy;  M.  Hanihara,  for  Japan;  Jonkheer  Beelaerts  van 
Blokland,  for  the  Netherlands;  Captain  Vasconcellos,  for  Portugal. 


TARIFF  AUTONOMY  61 

surtaxes  on  import  and  export  duties  provided  for  in  the  Treaty 
of  1902  with  Great  Britain  and  in  that  of  1903  with  the  United 
States  and  that  of  1903  with  Japan;  and  the  Powers  further  agree 
to  the  levy  of  an  additional  surtax  to  be  put  in  force  on  the  same 
day  for  articles  of  luxury  over  and  above  the  import  tariff  rate  of 
12i^  effective.  In  all  other  respects,  the  undertakings  of  China  and 
the  Powers  herein  stipulated  are  to  be  carried  out  in  accordance  with 
the  terms  of  the  Treaties  above  mentioned. 

3.  Within  five  years  from  the  date  of  agreement,  a  new  customs 
regime  shall  be  negotiated  and  concluded  by  treaty  on  the  basis  of  a 
maximum  rate  of  25  per  cent  ad  valorem  for  any  article  imported 
into  China,  within  which  rate  China  is  to  be  free  to  regulate  and 
arrange  the  import  tariff  schedule.  This  new  regime  is  to  be  in 
force  until  the  end  of  the  period  referred  to  in  paragraph  5  below. 

4.  The  reductions  now  applicable  to  the  customs  duty  collected 
on  goods  imported  into  and  exported  from  China  by  land  shall  be 
abolished. 

6.  The  treaty  provisions  between  China  and  the  Powers  by  which 
the  levy  of  customs  duties,  transit  dues  and  other  imposts  is 
regulated  shall  be  abrogated  at  the  end  of  10  years  from  date  of 
agreement. 

6.  China  voluntarily  declares  that  she  is  not  contemplating  to 
effect  any  fundamental  changes  in  the  present  system  of  customs 
administration,  or  to  disturb  the  devotion  of  the  customs  revenue 
to  the  services  of  the  foreign  loans  secured  thereon. 

In  support  of  the  propositions  which  he  had  pre- 
sented, Dr.  Koo  called  attention  to  the  fact  that  the 
significance  to  China  of  a  competency  upon  her  part 
to  control  her  import  customs  rates  was  peculiarly 
great  since  Chinese  industries  were  as  yet  largely 
undeveloped,  that  Chinese  communities  were  still 
largely  agricultural  in  character,  and  that,  therefore, 
China,  for  a  considerable  time,  could  not  depend  to 
any  considerable  extent  upon  sources  of  revenue 
other  than  maritime  customs.    Also,  he  pointed  out 


62  CHINA  AT  THE  CONFERENCE 

that  the  facts  should  not  be  overlooked  that  already 
a  large  portion  of  her  present  receipts  from  impost 
duties  was  pledged  for  the  payment  of  the  interest 
upon  foreign  loans  and  that  the  Chinese  Government 
had  imperative  need  for  increasing  her  present 
revenues  in  order  to  meet  the  legitimately  increased 
expenses  for  education,  public  health,  and  provision 
for  additional  public  utilities. 

The  discussion  of  specific  forms  of  relief  to  be 
granted  to  China  with  regard  to  her  tariff  almost 
immediately  revealed  certain  of  the  peculiar  condi- 
tions of  fact  which  were  to  render  impossible  the 
obtaining  by  China,  in  the  immediate  future,  of  her 
desire  with  respect  to  a  considerable  increase  in  her 
customs  rates.  The  matter  of  this  increase  was  indis- 
solubly  bound  up  with  the  abolition  by  China  of  Likin 
charges  upon  imported  and  exported  commodities, 
and  doubt  was  expressed  whether,  so  long  as  present 
political  conditions  should  persist  in  China,  the  Chi- 
nese Government  at  Peking  would  be  able  to  take 
effective  action  throughout  the  Provinces  with  regard 
to  this  matter.  Doubt  was  also  felt  by  some  of  the 
representatives  of  the  other  Powers  whether,  aside 
from  this,  it  would  be  advantageous  to  China  to  give 
to  her  an  increased  revenue  which  might  find  its  way 
into  the  hands  of  the  various  military  commanders, 
or  Tuchuns,  in  China  and  thus  tend  to  strengthen 
these  leaders  who,  as  yet,  had  not  been  brought  into 
due  subordination  to  the  civil  authorities.  Thus,  even 
those  Delegations  which  were  desirous  of  enabling 
China  to  increase  her  customs  revenues,  were  inclined 
to  impose  the  condition  that  China  should  give  the 


TAEIFF  AUTONOMY  63 

undertakiDg  that  the  increased  revenue  to  be  derived 
by  her  should  be  devoted  to  certain  specific  purposes. 
There  is  reason  for  believing  that  the  American  Gov- 
ernment was  not  disposed  to  require  such  an  under- 
taking, but  that  Japan  was  insistent  that,  out  of  this 
increase,  provision  should  be  made  for  the  payment 
of  outstanding  debts  to  foreign  financial  interests 
which  had  already  matured,  and  that  Great  Britain 
desired  that  this  increase  should  be  devoted  to  specific 
productive  enterprises.  There  was  also  some  discus- 
sion in  the  sub-committee  as  to  whether  the  increased 
customs  revenues  which  China  might  receive  might 
be  divided  into  allotments, — certain  percentages  to 
be  devoted  to  debt  payments,  education  and  produc- 
tive enterprises,  and  the  remainder  to  be  available 
for  the  current  administrative  expenses  of  the 
Chinese  Government.  This  plan,  however,  came  to 
nought  when  it  was  finally  decided  that  China  was  not 
to  be  given  the  immediate  treaty  right  to  levy  more 
than  an  effective  five  per  cent  upon  imports. 

It  should  further  be  said  that,  even  when  it  was 
proposed  that  the  immediate  increase  of  import 
duties  should  be  limited  to  7J  per  cent,  the  Japanese 
Delegation  protested  that  this  would  have  such  seri- 
ous effects  upon  Japanese  industries  that  it  could  not 
give  its  assent.  The  matter  was  referred  to  the 
Japanese  Government  at  Tokyo  and  this  position  of 
its  Delegation  affirmed. 

From  the  very  beginning  it  appeared  certain  that, 
the  domestic  conditions  of  China  being  what  they 
were,  no  promise  would  be  given  by  the  Powers  of  a 
definite  date  at  which  China  was  to  obtain  complete 
tariff  autonomy. 


64  CHINA  AT  THE  CONFERENCE 

At  the  second  meeting  of  the  sub-committee,  held 
November  30,  Sir  Robert  Borden,  in  behalf  of  the 
British  Delegation,  definitely  proposed  that  the  pres- 
ent tariff  of  China  should  be  immediately  increased 
so  as  to  make  it  an  effective  five  per  cent,  and  that, 
after  a  general  revision  of  the  valuations  of  imports 
into  China  had  been  obtained,  the  rate  should  be 
raised  to  7J  per  cent. 

Japanese  Statement.  Mr.  Odagiri,  in  behalf  of  the 
Japanese  Delegation,  submitted  the  following  state- 
ment: 

Taking  into  consideration  the  views  and  suggestions  made  by 
our  colleagues  at  yesterday's  meeting,  as  well  as  of  the  commercial 
relations  between  Japan  and  China,  the  Japanese  sub-committee 
states  its  views  regarding  the  increase  of  tariff  as  follows : 

As  the  Japanese  trade  with  China  covers  more  than  30  per  cent 
of  China's  foreign  trade  and  represents  the  same  percentage  of 
Japan's  oversea  trade,  the  country  which  would  suffer  most  by  the 
revised  tariff  would  be  Japan. 

Japan  supplies  those  articles  which  are  mostly  sold  to  the  lower 
class  of  people  in  China  to  satisfy  their  daily  need.  Those  goods 
imported  from  Japan  represent  the  production  of  a  large  number  of 
comparatively  small  Japanese  manufacturers. 

Therefore,  this  sudden  and  big  increase  of  tariff  would  mean  on 
the  one  hand  forcing  high  prices,  to  the  purchasers  in  China — the 
majority  of  the  common  people — causing  a  higher  cost  of  living, 
and,  on  the  other  hand,  would  mean  a  serious  effect  upon  the  in- 
dustry of  Japan.  In  consequence  it  is  very  important  that  the  tariff 
revision  should  follow  a  gradual  process,  allowing  enough  time  to 
enable  the  people  of  the  countries  concerned  to  adjust  their  economic 
life  accordingly. 

In  the  foregoing  circumstances  the  Japanese  sub-committee  de- 
clares, much  to  its  regret,  that  in  its  opinion  the  abrupt  increase  of 
tariff  to  an  effective  7^  rate — more  than  doubling  duties  of  the 


TAKIFF  AUTONOMY  66 

present  3^  per  cent  tariff — is  impossible  to  put  into  praxstice,  and 
as  to  a  12^  per  cent  tariff,  it  is  absolutely  impractical. 

The  revision  which  the  Japanese  sub-committee  believes  proper  is 
an  increase  of  the  present  tariff  to  an  effective  5  per  cent  in  accor- 
dance with  the  agreement  between  the  Chinese  Grovemment  and  the 
diplomatic  bodies  in  Peking. 

But  in  order  to  avoid  the  delay  of  6  months  to  one  year  required 
for  the  establishment  of  the  aforesaid  conversion,  the  Japanese  sub- 
committee would  propose  the  alternative  measure  which  will  avoid 
unnecessary  delay  and  will  result  in  greater  advantage  to  the  Chinese 
Government. 

As  an  alternative  measure,  it  is  proposed  to  levy  a  surtax,  of 
say  30  per  cent,  upon  export,  import  and  coastwise  trade,  which 
should  bring  in  to  the  Chinese  Government  an  additional  revenue 
of  approximately  silver  $20,000,000. 

The  fruit  of  raising  the  tariff  to  an  effective  5  per  cent,  on  imports 
would  be  an  increase  of  revenue  of  about  silver  $16,000,000. 

This  suggested  surtax  is  not  an  entirely  new  idea,  for  this  year 
all  the  Powers  agreed  to  the  imposition  of  a  surtax  of  10  per  cent, 
levied  on  all  customs  dues  for  one  year,  as  a  measure  of  temporary 
famine  relief,  and  it  was  estimated  by  the  customs  authorities  that 
this  surtax  would  produce  about  taels  5,000,000. 

Of  course,  the  Japanese  sub-committee  would  not  mean  absolutely 
and  permanently  to  refuse  its  assent  to  the  proposal  to  increase  the 
tariff.  On  the  contrary  it  would  say  that  Japan  is  ready  to  assist 
the  Chinese  in  revising  the  tariff  as  is  shown  in  the  supplementary 
Treaty  of  Commerce  and  Navigation  which  was  concluded  during 
the  year  1903. 

There  is  no  objection  whatever  on  the  part  of  Japan  to  the  sug- 
gestion to  appoint  an  international  committee  to  proceed  to  China 
and  study  the  condition  of  tariff,  the  likin,  and  related  matters,  in 
order  to  solve  this  difficult  question  and  present  to  the  respective 
Governments  any  workable  scheme  for  increasing  the  tariff. 

Discussion.      Dr.    Koo,   replying   to    Sir   Robert 
Borden  and  M.  Odagiri,  pointed  out  that  an  increase 
of  the  Chinese  tariff  rates  to  7J  per  cent  woiild  be 
6 


66  CHINA  AT  THE  CONFERENCE 

but  a  slight  one,  and  that,  assuming  that  Japan's 
share  of  China's  foreign  trade  was  30  per  cent,  such 
an  increase  would  mean  scarcely  more  than  six 
million  dollars  gold  to  be  spread  annually  through- 
out all  parts  of  the  Japanese  Empire,  and  should, 
therefore,  not  be  a  cause  of  anxiety  to  Japanese 
traders  and  manufacturers. 

Dr.  Koo  also  presented  statistical  tables  showing: 

(1)  The  Actual  Percentages  of  Import  Duties  Col- 
lected in  Comparison  with  the  Value  of  Imports ;  and 

(2)  The  Average  Percentage  which  the  Import 
Duties  Collected  by  Certain  Countries  Bear  to  the 
Value  of  Their  Imports ;  and  (3)  The  Average  Per- 
centage which  the  Import  Duties  Collected  by  Japan 
Bear  to  the  Value  of  her  Imports.  These  tables 
showed,  as  Dr.  Koo  pointed  out,  that,  because  of  a 
discrepancy  between  the  actual  valuations  and  those 
used  for  the  purpose  of  assessing  tariff  duties,  there 
had  been  an  annual  net  loss  of  revenue  to  China 
approximating  27,000,000  Chinese  dollars,  and  that 
this  fact  should  be  taken  into  consideration  in  deter- 
mining the  relief  which  China  in  the  future  should 
obtain. 

After  some  discussion  Dr.  Koo,  on  behalf  of  the 
Chinese  Delegation,  expressed  his  willingness  to 
accept  Sir  Robert  Borden's  proposals  with  an  amend- 
ment to  the  effect  that,  pending  the  revision  of  the 
import  tariff  to  7J  per  cent  effective,  a  surtax  should 
be  immediately  applied  which  would  yield  a  revenue 
equivalent  to  7J  per  cent  effective.  Dr.  Koo  also 
accepted  Sir  Robert's  corollary  proposition  that  a 
higher  rate,  say  a  maximum  of  12J  per  cent,  might 


TAEIFF  AUTONOMY  67 

be  levied  on  articles  that  miglit  be  fairly  denominated 
luxuries. 

Further  discussion  showed  some  objection  upon  the 
part  of  the  French  Delegation  to  the  higher  charge 
upon  luxuries  since,  M.  Sarraut  said,  it  would  be  diffi- 
cult to  draw  a  line  of  demarkation  between  necessities 
and  luxuries;  also  objection  upon  the  part  of  Sir 
Robert  Borden  to  the  proposition  of  levying  forth- 
with a  surtax  until  there  had  been  a  revaluation  of 
commodities  and  an  effective  7J  per  cent  rate  estab- 
lished. But  all  the  Delegations,  Japan  alone  ex- 
cepted, gave  their  approval  to  the  proposition  that 
China  should  be  given  the  right  to  levy  7J  per  cent 
tariff  duties.  The  Japanese  Delegation  said  that, 
before  giving  her  approval  to  this,  they  would  have 
to  communicate  with  their  Government  at  Tokyo. 

Draft  Agreement.  At  the  third  meeting  of  the  sub- 
committee, held  December  27,  Sir  Robert  Borden  sub- 
mitted a  draft  of  agreement  upon  the  Chinese  tariff 
which  he  hoped  would  bring  together  the  conflicting 
viewpoints  and  especially  those  of  the  Chinese  and 
Japanese  Delegations.  It  is  not  necessary  to  quote 
this  tentative  draft,  which  was  discussed  at  the  f oui'th 
meeting  of  the  sub-committee,  it  being  sufficient  to 
give  the  text  of  the  report  prepared  by  Senator 
Underwood  based  upon  that  draft  and  the  discussion 
that  was  had  upon  it.  This  report,  submitted  at  the 
fifth  meeting  of  the  sub-committee,  held  January  3, 
1922,  was  as  follows : 

The  Powers  attending  this  Conference  agree : 
I.  That  immediate  steps  be  taken  through  a  Special  Conference 
representing  China  and  the  Powers  which  accept  this  agreement 


68  CHINA  AT  THE  CONFERENCE 

to  prepare  the  way  for  the  speedy  abolition  of  likin  and  the  fulfill- 
ment of  the  other  conditions  laid  down  in  Article  VIII  of  the 
Anglo-Chinese  Commercial  Treaty  of  September  5,  1902,  and  the 
corresponding  Articles  of  the  United  States  and  Japanese  Treaties, 
with  a  view  to  the  levying  of  the  surtaxes  as  provided  in  those 
Articles. 

II.  That  the  present  tariff  on  importation  shall  be  forthwith  re- 
vised and  raised  to  a  basis  of  5  per  cent  effective. 

That  this  revision  shall  be  carried  forthwith  by  a  Revision  Com- 
mittee at  Shanghai  on  the  general  lines  of  the  last  revision.  The 
revision  shall  proceed  as  rapidly  as  possible  with  a  view  to  its  com- 
pletion within  four  months  from  the  conclusion  of  the  present  Con- 
ference, and  the  revised  tariff  shall  become  effective  two  months 
after  publication  without  awaiting  ratification. 

III.  That  the  interim  provisions  to  be  applied  until  the  Articles 
referred  to  in  paragraph  I  come  into  operation  be  considered  by 
the  aforesaid  Special  Conference  which  shall  authorize  the  levying 
of  a  surtax  on  dutiable  imports  as  from  such  date,  for  such  pur- 
poses, and  subject  to  such  conditions  as  they  may  determine.  The 
surtax  shall  be  at  a  uniform  rate  of  2^  per  cent  ad  valorem  except 
in  the  case  of  certain  articles  of  luxury  which  in  the  opinion  of 
the  Conference  can  bear  a  greater  increase  without  unduly  im- 
peding trade,  and  upon  which  the  total  surtax  shall  not  exceed 
5  per  cent. 

IV.  (1)  That  there  shall  be  a  further  revision  of  the  tariff  to 
take  effect  at  the  expiration  of  four  years  following  the  completion 
of  the  immediate  revision  herein  authorized,  in  order  to  ensure 
that  the  rates  shall  correspond  to  the  ad  valorem  rates  fixed. 

(2)  That  following  this  revision  there  shall  be  periodical  re- 
visions of  the  tariff  every  seven  years  for  the  same  purpose. 

(3)  That  in  order  to  prevent  delay  such  periodical  revisions 
shall  be  effected  in  accordance  with  rules  to  be  settled  by  the  Special 
Conference  provided  in  paragraph  I. 

V.  That  in  all  matters  relating  to  customs  duties  there  shall  be 
effective  equality  of  treatment  and  of  opportunity  for  all  nations 
parties  to  this  Agreement. 

VI.  That  reductions  now  applicable  to  the  customs  duties  col- 
lected on  goods  imported  into  and  exported  from  China  by  land 
shall  be  abolished. 


TABIFF  AUTONOMY  69 

VII.  That  the  charge  for  transit  passes  shall  be  at  the  rate  of 
2^  per  cent  ad  valorem  except  when  the  arrangements  contemplated 
in  paragraph  I  are  in  force. 

VIII.  That  the  Treaty  Powers  not  here  represented  shall  be 
invited  to  accept  the  present  Agreement. 

IX.  That  this  Agreement  shall  over-ride  all  provisions  of  Treaties 
between  China  and  the  Powers  which  accept  it  which  are  incon- 
sistent with  its  terms. 

The  Delegate  for  China  submitted  the  following 
communication  which  it  was  unanimously  agreed 
should  form  a  part  of  the  foregoing  Agreement  as  an 
Appendix  thereto : 

The  Chinese  Delegation  has  the  honor  to  inform  the  Committee 
on  the  Far  Eastern  Questions  of  the  Conference  on  the  Limitation 
of  Armament  that  the  Chinese  Government  have  no  intention  to 
effect  any  change  which  may  disturb  the  present  administration  of 
the  Chinese  Maritime  Customs. 

Land  Frontier  Duties.  Discussion  of  these  pro- 
posals revealed  the  fact  that  the  French  Delegation 
was  unwilling  to  accept  Section  VI  which  provided 
for  the  abolition  of  the  reductions  provided  for  by 
existing  treaties  on  goods  imported  by  land  into 
China,  and  that  the  American  Delegation  was  equally 
insistent  upon  the  retention  of  this  provision  in  order 
that  the  principle  of  equality  of  treatment  might 
have  full  application  to  all  of  China's  imports.' 

*  In  explanation  with  regard  to  China's  land  frontier  tariff  duties,  the 
following  statement,  taken,  in  the  main,  from  Willoughby's  Foreign  Rights 
and  Interests  in  China,  pp.  152,  is  given: 

Special  Arrangement  Regarding  Trade  between  Korea  and  Afanchuria. 
Japan  has  with  China  a  special  arrangement  whereby  she  secures  a  reduc- 
tion in  customs  dues  on  goods  imported  into  Manchuria  from  or  through 
Korea  (Chosen)  and  exported  from  Manchuria  to  or  through  Chosen,  by 
rail  via  Antung.  On  dutiable  goods  leaving  Manchuria  by  rail  for  places 
beyond   that   point,   only   a   two-thirds  customs  rate   is  charged.     The 


70  CHINA  AT  THE  CONFERENCE 

The  French  Delegate  took  strongly  the  view  that 
the  special  terms  which  China  had  given  to  imports 
from  Indo-China  were  correlative  to  the  considerable 
special  personal,  civil  and  commercial  privileges 
which  France  had  given  to  Chinese  nationals  residing 
in  Tongking — some  400,000  in  number. 

"  Transit "  charges  on  these  goods  are  one-half  of  the  customs  charges, 
that  is,  one-half  of  the  two-thirds  normal  rate.  Goods  from  Manchuria 
for  local  consumption  in  Hsin  Wiju  or  which  within  two  years  are  carried 
by  rail  beyond  that  point  pay  the  full  rate  but  obtain  a  rebate  of  one-third. 

Russian  Frontier  Trade.  By  certain  regulations  attached  to  the  St.  Peters- 
burg Treaty  of  1881  between  China  and  Russia  it  was  provided  that  no 
duties  should  be  levied  on  the  frontier  of  the  two  countries  within  a  limit 
of  one  hundred  li  (33  miles).  This  zone  was  abolished  in  1912  to  take 
effect  on  January  1,  1913.  By  regulations  agreed  upon  by  the  two  coun- 
tries, under  date  of  July  8, 1907,  it  was  provided  that  China  was  to  estabhsh 
customs  stations  on  the  frontier,  but  was  to  collect  no  duties  upon  goods 
shipped  by  rail  to  stations  within  this  former  zone.  Also  that  certain  areas 
were  to  be  fixed  within  which  goods  shipped  by  rail  should  be  required  to 
pay  but  two-thirds  of  the  regular  Chinese  import  duty.  Thus  at  Harbin 
the  two-thirds  duty  area  was  to  extend  to  all  points  within  a  radius  of 
ten  li  from  the  station.  At  other  designated  stations  the  radius  was  to  be 
five  li.  For  all  its  smaller  stations  on  the  Eastern  Railway  the  radius  was 
to  be  three  li.  Goods  shipped  out  of  these  areas  were  to  pay  the  full  duty. 
It  was  further  provided  that  while  this  was  a  special  arrangement  between 
China  and  Russia,  not  only  Russia  but  all  foreign  merchandise  shipped  to 
China  over  the  Chinese  Eastern  Railway  should  enjoy  the  same  treatment. 

Russia  on  her  part  agreed  to  a  reduction  of  one-third  on  goods  imported 
across  her  frontier  from  China. 

According  to  Article  10  of  the  Regulations  for  trade  between  China  and 
Russia  by  Railway  promulgated  September  8,  1896,  goods  carried  by  rail 
were  to  pay  one-third  less  than  the  regular  customs  dues.  A  little  later 
(July  8,  1907,  and  May  30,  1908)  it  was  agreed  that  in  determining  the 
duties  to  be  paid  at  the  ports  of  Manchuli  and  Suifenho  there  should  be  the 
same  reduction. 

Frontier  Trade  with  Indo-China.  By  Article  III  of  the  amended  Trade 
Regulations  for  trade  between  China  and  France  of  1887  it  was  provided 
that  with  a  view  to  developing  as  rapidly  as  possible  the  commerce  between 
China  and  Tonkin  the  rights  of  exportation  and  importation  stipulated 
in  Articles  VI  and  VII  of  the  treaty  of  April  23,  1886,  should  be  provision- 
ally modified  so  that  all  foreign  goods  entering  the  Chinese  provinces  of 


TARIFF  AUTONOMY  71 

The  British  Delegation  indicated  that,  while  India 
was  prepared  to  accept  the  principle  that  the  rates 
of  customs  duties  levied  on  all  land  frontier  should 
be  the  same  as  the  maritime  customs,  it  was  expected 

Yunnan,  Kwangtung  and  Kwangsi  (the  Kwang  Provinces)  across  the  fron- 
tier should  pay  three-tenths  less  duties  than  the  regular  tariff,  and  that 
the  goods  from  China  across  the  frontier  should  pay  four-tenths  less  than 
the  regular  rate.  It  has  since  been  further  agreed  that  the  rates  fixed  by 
the  Revised  Tariff  of  1903  should  not  be  followed,  but  those  of  1858.  This 
agreement  is  still  in  force. 

In  1895  by  a  treaty  signed  at  Peking  on  June  20  between  France  and 
China  it  was  provided  that  "  Chinese  goods  in  transit  from  one  or  the 
other  of  the  four  towns  open  to  commerce  on  the  frontier,  Lungchou, 
Mengtse,  Ssumao  and  Hokou,  in  passing  through  Annam,  will  pay  on 
leaving,  duties  reduced  by  four-tenths " ;  and  also  that  "  Chinese  goods 
exported  from  the  four  above-named  locations  and  transported  to  Chinese 
maritime  or  river  ports,  open  to  commerce,  shall  pay  on  passing  the  fron- 
tier export  duty  reduced  by  four-tenths.  A  special  certificate  will  be  deliv- 
ered setting  forth  the  payment  of  this  duty,  and  destined  to  accompany 
the  goods.  When  they  shall  arrive  at  one  of  the  maritime  or  river  ports 
open  to  commerce,  they  shall  pay  the  half  re-importation  duty  in  con- 
formity with  the  general  rule  for  all  goods  of  like  nature  in  the  maritime 
or  river  ports  open  to  commerce." 

Chinese  goods  transported  from  Chinese  martime  or  river  ports  open  to 
commerce,  by  way  of  Annam,  towards  the  four  above-named  localities, 
shall  pay  on  crossing  (the  frontier)  full  duty.  A  special  certificate  will  be 
delivered,  setting  forth  the  payment  of  this  duty,  and  destined  to  accom- 
pany the  goods.  When  they  shall  arrive  at  one  of  the  frontier  customs 
stations  they  shall  pay  on  entry  half  re-importation  duty  based  on  the 
reduction  by  four-tenths. 

By  Article  VIII  of  the  Anglo-Chinese  Convention  of  March  1,  1894 
(MacMurray,  p.  1),  it  was  provided  that  Chinese  products  and  manufactures, 
with  the  exception  of  salt,  should  enter  Burmah  by  land  free  of  duty;  that 
British  and  Burmese  produce,  with  the  exception  of  rice,  should  be  exported 
to  China  by  land  free  of  duty,  and  that  the  import  duty  on  salt  and  the 
export  duty  on  rice  should  not  be  higher  than  the  duties  on  import  or 
export  by  sea.  By  Article  IX  of  the  same  Convention  it  was  provided 
that  the  duty  on  goods  imported  by  land  by  certain  specified  routes  from 
Burmah  to  China  should  be  less  by  three-tenths  than  the  duties  specified 
in  the  general  tariff  of  China's  Maritime  Customs;  and  that  the  duty  on 
goods  exported  from  China  by  those  routes  should  be  leas  by  four-tenths 
than  those  specified  in  the  general  maritime  customs. 


72  CHINA  AT  THE  CONFERENCE 

that,  if  this  was  done,  arrangements  would  be  made 
to  restore  to  India  the  right  to  impose  import  duties 
on  Chinese  goods  entering  Burmah,  and  export 
duties  on  Burmese  products  and  British  manufac- 
tures exported  by  land  to  China. 

In  order  to  meet  these  views  of  France  and  Great 
Britain,  the  following  provision,  drafted  by  Sir 
Robert  Borden  to  replace  Article  VI  of  the  draft  of 
agreement  previously  reported  by  Senator  Under- 
wood, was  proposed  at  the  sixth  meeting  of  the  sub- 
committee, held  January  4,  1922 : 

That  the  principle  of  uniformity  in  the  rates  of  customs  duties 
levied  on  all  the  frontiers,  land  and  maritime,  of  China  be  recog- 
nized, and  that  it  be  referred  to  the  Special  Conference  mentioned 
in  paragraph  I  [of  the  Draft  Heads  of  Agreement  of  December  28], 
to  make  arrangements  to  give  practical  effect  to  this  principle,  with 
power  to  authorize  any  adjustments  which  may  appear  equitable  in 
cases  in  which  the  customs  privilege  to  be  abolished  was  granted  in 
return  for  some  local  economic  favor.  In  the  meantime,  any  in- 
crease in  the  rates  of  customs  duties  or  surtax  imposed  in  pursuance 
of  the  present  agreement  shall  be  levied  at  a  imiform  rate  ad  valorem 
on  all  frontiers,  land  and  maritime. 

Discussion  in  Committee  of  the  Whole:  Statement 
by  Senator  Underwood.  This  proposal  received  the 
unanimous  approval  of  all  the  members  of  the  sub- 
committee, which  thereupon  terminated  its  work 
upon  the  Chinese  tariff,  and  submitted  its  conclu- 
sions to  the  Committee  of  the  Whole. 

Thereupon,  at  the  seventeenth  meeting  of  the  Com- 
mittee on  Pacific  and  Far  Eastern  Questions,  held 
January  5,  the  consideration  of  the  conclusions  of  the 
sub-committee  which  have  been  above  given  was 


TAEIFF  AUTONOMY  73 

taken  up.     In  submitting  them  to  the  Committee, 
Senator  Underwood  said,  in  part :  * 

The  importance  of  this  Agreement  in  reference  to  trade  condi- 
tions in  China,  which  to  a  large  extent  were  controlled  by  the  duties 
levied  at  the  customs  house,  went.  Senator  Underwood  thought, 
much  further  than  the  mere  question  of  the  money  involved.  As 
he  had  stated  some  time  ago,  he  thought  one  of  the  principal  causes 
of  irritation  and  difference  between  the  nations  of  the  world  arose 
from  their  trade  conditions,  and  when  one  nation  felt  that  it  was 
not  standing  on  an  equality  with  another  nation  it  was  likely  to 
bring  about  conditions  of  unrest  and  might  lead  in  the  end  to  war ; 
and  the  great  purpose  of  this  convention  was  to  eliminate  the  causes 
of  war.  Therefore  Senator  Underwood  thought  that  the  members 
of  the  committee  could  congratulate  themselves  at  this  time  that 
they  had  reached,  in  the  report  that  he  would  present,  an  under- 
standing to  vripe  out  the  discriminations  on  the  border  of  China  in 
reference  to  customs  duties  and  that  would  make  all  the  countries 
of  the  world  feel  that  they  would  hereafter  have  an  open  door  that 
meant  equal  opportunity  of  trade. 

The  agreement  in  its  present  form.  Senator  Underwood  said, 
contained  provisions  relating  to  two  distinct  phases  of  tariff  read- 
justment, namely,  those  which  might  become  immediately  applicable 
without  taking  treaty  form  requiring  ratification  and  those  which 
must  be  embraced  in  a  treaty  and  which  would  require  ratification. 
The  first  of  these  related  to  the  immediate  revision  of  the  present 
tariff  to  a  basis  of  5  per  cent  effective  and  the  second  related  to 
subjects  to  be  dealt  with  in  a  special  conference  which  would  be 
charged  with  taking  measures  looking  to  the  speedy  abolition  of 
likin  and  the  application  of  surtaxes,  together  with  the  realization  of 
the  principle  of  uniformity  in  the  rates  of  customs  duties  on  all 
frontiers  whether  land  or  maritime. 

The  stages,  therefore,  of  applying  the  terms  of  the  agreement 
were  as  follows : 

1.  A  committee  of  revision  would  meet  forthwith  at  Shanghai  to 
revise  the  present  tariff  to  a  basis  of  5  per  cent  effective.     This 

*What  follows  is  quoted  or  paraphrased  from  the  report  given  in  U.  8. 
Senate  Doctiment  No.  126,  67th  Congress,  2d  session,  pp.  589  B. 


74  CHINA  AT  THE  CONFERENCE 

revision  would  become  effective  two  months  after  publication  with- 
out awaiting  ratification.  It  would  provide  an  additional  revenue 
amounting  to  about  $17,000,000  silver. 

2.  Immediate  steps  would  be  taken  for  a  special  conference  repre- 
senting China  and  the  Powers  charged  with  the  duty  of  preparing 
the  way  for  the  speedy  abolition  of  the  likin  and  the  bringing  into 
effect  of  the  surtaxes  provided  for  in  the  treaties  between  China 
and  Great  Britain  of  1902  and  China  and  the  United  States  and 
Japan  of  1903.  The  Special  Conference  would  likewise  put  into 
effect  a  surtax  of  2^  per  cent  ad  valorem,  which  would  secure  addi- 
tional revenue  amounting  to  approximately  $27,000,000  silver,  and 
a  special  surtax  on  luxuries,  not  exceeding  5  per  cent  ad  valorem, 
which  would  provide  a  still  further  revenue  amounting  to  $2,167,- 
000  silver.  The  additional  revenue  from  customs  duties  provided 
in  the  present  agreement  would  fall  into  four  categories,  as  follows : 

1.  Increase  to  5  per  cent  effective,  $17,000,000  silver. 

2.  Surtax  of  2^  per  cent,  $27,000,000  silver. 

3.  Surtax  not  exceeding  5  per  cent  on  luxuries,  $2,167,000  silver. 

4.  Total  additional  revenue,  $46,167,000  silver. 

With  the  completion  of  the  work  of  the  Special  Conference  carry- 
ing into  effect  the  abolition  of  likin  and  the  application  of  the 
surtaxes  provided  in  the  treaties  with  Great  Britain,  Japan,  and 
the  United  States,  the  additional  revenue  provided  should  amount 
to  $156,000,000  silver.  The  present  tariff  produced  revenue  at  the 
rate  of  $64,000,000  silver  for  1920.  If  to  this  were  added  the  addi- 
tional revenue  provided  for  in  the  agreement,  the  total  yield  from 
customs  duties  would  amount  to  $110,167,000  silver.  Aside  from 
these  measures,  there  were  important  provisions  in  the  agreement 
relating  to  future  revisions  of  the  tariff  with  a  view  to  maintaining 
it  on  a  correct  basis  of  valuation  so  that  it  might  produce  revenue 
at  the  effective  rates  to  which  China  was  entitled.  Following  the 
immediate  revision  there  would  be  a  second  revision  in  four  years 
and  subsequent  revisions  every  seven  years. 

Heretofore  there  had  been  some  difficulty  encountered  in  securing 
revisions  regularly.  The  special  conference  was  charged  with  the 
duty  of  providing  means  whereby  future  delays  in  revision  might 
be  avoided.     Carrying  into  effect  the  general  agreement  already 


TAEIFF  AUTONOMY  75 

adopted  by  this  Conference,  there  was  a  provision  in  the  present 
agreement  for  effective  equality  of  treatment  and  of  opportunity. 
This  provision  carried  with  it  an  important  recognition  of  the  prin- 
ciple of  uniformity  in  the  rates  of  customs  duties  levied  on  all 
frontiers,  which  meant  the  abolition  of  discriminatory  practices  in 
relation  to  goods  imported  by  land. 

Senator  Underwood  said  he  felt  that  for  the  first  time  measures 
had  been  taken  which  effectually  removed  the  highly  unjust  and 
controversial  preferences  with  which  the  foreign  trade  of  China 
had  heretofore  been  encumbered.  Those  nations  which  had  enjoyed 
the  advantages  of  preferential  treatment  across  their  land  frontiers 
had  acted  with  commendable  foresight  and  altruism  in  surrendering 
those  minor  advantages  in  trade  to  the  broader  principles  of  equality 
of  treatment  and  the  general  betterment  of  the  conditions  of  friendly 
trade  competition.  This  appeared  to  him  to  represent  a  signal 
achievement,  not  only  in  the  interest  of  China  and  of  each  of  the 
Treaty  Powers,  but  also  in  the  interest  of  trade  in  general  and  of 
peace  itself. 

Chinese  Statement.  Dr.  Koo,  responding  to  the 
remarks  and  report  of  Senator  Underwood,  took  the 
opportunity  of  making  the  follomng  formal  state- 
ment, in  behalf  of  the  Chinese  Government,  regarding 
the  re-establishment  of  China's  tariff  autonomy — a 
matter  to  which,  he  said,  the  Chinese  people  attached 
great  importance : 

On  November  23  last,  I  had  the  honor,  in  behalf  of  the  Chinese 
Delegation,  to  lay  the  tariff  question  of  China  before  the  committee. 
Three  propositions  were  submitted.  The  principal  one  of  them  was 
for  the  restoration  to  China  of  her  tariff  autonomy :  the  other  two 
being  intended  merely  as  provisional  measures  to  prepare  the  ground 
for  the  early  consummation  of  the  main  object.  At  the  same  time 
I  stated  that  it  was  not  the  intention  of  the  Chinese  Government 
to  effect  any  change  that  might  disturb  the  present  administration 
of  the  Chinese  maritime  customs,  though  this  statement  obviously 
could  not  be  reasonably  construed  to  preclude  China's  legitimate 


76  CHINA  AT  THE  CONFERENCE 

aspirations  gradually  to  make  this  important  branch  of  the  Chinese 
Government  more  national  in  character. 

I  explained  the  reasons  why  China  was  desirous  of  recovering  her 
freedom  of  action  in  respect  to  the  matter  of  levying  customs  duties. 
The  committee,  after  some  discussion,  referred  the  whole  question 
to  a  sub-committee,  of  which  Senator  Underwood  has  been  the  dis- 
tinguished chairman.  The  results  of  the  discussions  in  the  sub-com- 
mittee are  embodied  in  an  agreement  which  has  just  been  laid  before 
you.  It  is  a  valuable  agreement,  embodying,  as  it  does,  a  number  of 
important  points  connected  with  the  effective  application  of  the 
present  regime  of  treaty  tariff.  But  it  will  be  noted  that  the  ques- 
tion of  the  restoration  of  tariff  autonomy  to  China  is  not  included, 
it  being  the  opinion  of  some  members  of  the  sub-committee  that  it 
would  not  be  practicable  to  fix  at  present  a  definite  period  within 
which  the  existing  treaty  provisions  on  tariff  were  to  be  brought 
to  an  end,  and  that  the  question  should  be  decided  in  the  light  of 
conditions  that  might  arise  in  the  future. 

The  Chinese  Delegation,  however,  cannot  but  wish,  that  a 
different  view  had  prevailed.  Tariff  autonomy  is  a  sovereign  right 
enjoyed  by  all  independent  states.  Its  free  exercise  is  essential  to 
the  well-being  of  the  state.  The  existing  treaty  provisions,  by 
which  the  levy  of  customs  duties,  transit  dues,  and  other  imports 
is  regulated,  constitute  not  only  a  restriction  on  China's  freedom 
of  action,  but  an  infringement  on  her  sovereignty.  Restoration  to 
her  of  tariff  autonomy  would  only  be  recognition  of  a  right  which 
is  hers  and  which  she  relinquished  against  her  will. 

The  maintenance  of  the  present  tariff  regime  means,  moreover, 
a  continued  loss  of  revenue  to  the  Chinese  Government.  The 
customs  import  duty  under  this  regime  is  limited  to  the  very  low 
rate  of  5  per  cent  ad  valorem  for  all  classes  of  dutiable  goods,  com- 
pared with  the  average  rate  of  15  per  cent  to  60  per  cent  levied  by 
other  countries.  In  fact,  because  the  duties  are  levied  on  the  basis 
of  a  previously  fixed  schedule,  the  actual  collections  amount  to 
only  3^  per  cent  effective.  The  customs  revenue,  therefore,  consti- 
tutes only  about  7^  per  cent  of  China's  total  revenue,  while  the 
average  for  the  principal  countries  in  the  west  ranges  from  12  per 
cent  to  15  per  cent  at  present,  and  still  higher  before  the  war.    When 


TARIFF  AUTONOMY  77 

the  proposed  surtax  of  2^  per  cent  for  ordinary  articles  and  of  5  per 
cent  on  certain  luxuries  eventually  goes  into  effect,  more  revenue 
will  be  produced,  but  even  then  it  will  haruly  be  commensurate  with 
the  rapidly  growing  needs  of  the  Chinese  Government.  Much  of  the 
elasticity  of  the  fiscal  systems  of  other  States  depends  upon  their 
freedom  to  regulate  their  customs  duties.  To  provide  the  fullest 
and  most  unembarrassed  opportunity  to  China  to  develop  and  main- 
tain for  herself  an  effective  and  stable  government,  it  is  necessary 
to  restore  tariff  autonomy  to  her  at  an  early  date. 

The  necessity  to  levy  a  uniform  low  duty  has  encouraged  a  dis- 
proportionate increase  in  the  import  of  luxuries  such  as  wine  and 
tobacco ;  and  apart  from  the  loss  of  revenue  consequent  upon  giving 
these  things  the  same  rate  as  is  levied  on  the  necessaries  of  life,  the 
effect  on  the  social  and  moral  habits  of  the  Chinese  people  has  been 
altogether  deleterious.  A  beginning  has  been  made  in  the  agreement 
before  the  committee  in  authorizing  a  levy  of  an  additional  surtax 
of  2^  per  cent  on  certain  articles  of  luxury,  but  it  is  apparent  that  a 
greater  increase  is  needed  if  a  restraining  influence  is  to  be  exercised 
in  the  use  of  these  articles  of  luxury. 

Nor  is  it  to  be  overlooked  that  the  present  treaty  tariff  regime 
is  an  impediment  to  China's  economic  development.  Under  this 
r^ime  China  enjoys  no  reciprocity  from  any  of  the  Powers  with 
which  she  stands  in  treaty  relations.  Though  every  Treaty  Power 
enjoys  the  advantage  of  having  its  wares  imported  into  China  at 
the  exceptionally  low  rate  of  5  per  cent  ad  valorem,  the  Chinese 
produce  and  merchandise,  on  entering  into  any  of  these  countries, 
is  subjected  to  the  maximum  rates  leviable,  which  are  in  some  cases 
60  or  70  times  the  rate  which  she  herself  levies  on  foreign  imports. 
The  necessity  of  levying  uniform  duties  on  all  articles  imported  into 
China,  on  the  other  hand,  makes  these  duties  on  such  articles  as 
machinery  and  raw  materials  for  Chinese  industries  a  handicap  to 
China's  industrial  development.  At  present  there  are  more  than 
1000  Chinese  factories  employing  foreign  machinery  and  methods 
and  engaged  in  over  30  different  kinds  of  important  industries.  To 
enable  them  to  live  and  develop  and  thereby  contribute  to  the 
growth  of  China's  foreign  trade  in  which  all  nations  are  deeply 
interested,  some  latitude  is  necessary  in  the  regulation  of  the  cus- 
toms duties. 


78  CHINA  AT  THE  CONFERENCE 

Besides,  regulation  of  China's  tariff  by  treaty  must  inevitably,  in 
the  nature  of  things,  work  unjustly  and  to  her  great  detriment. 
Thus,  whenever  China  makes  a  proposal,  be  it  for  revision  of  the 
tariff  to  bring  it  more  into  harmony  with  the  prevailing  prices  or 
for  an  increase  of  the  customs  duty  to  meet  her  increased  needs,  the 
unanimous  consent  of  more  than  a  dozen  Treaty  Powers  is  necessary. 
As  each  country  naturally  desires  to  protect  and  promote  its  own 
commercial  interests  in  China,  and  as  the  industries  of  these  Treaty 
Powers  vary  in  character  and  export  different  kinds  of  merchandise, 
they  all  seek  to  avoid  the  burden  of  the  new  revision  or  increased 
rate  falling  upon  the  industries  of  their  own  countries.  With  this 
end  in  view,  different  conditions  are  not  infrequently  attached  by 
different  Powers  to  their  consent  to  revise  the  customs  tariff  or 
increase  the  rate. 

Thus,  though  this  matter  of  custom  tariff  is  intimately  connected 
with  the  well-being  of  the  Chinese  State,  the  interests  of  the  Treaty 
Powers  appear  to  be  placed  at  times  before  the  legitimate  interests 
of  China.  Under  such  circumstances  the  difficulty  of  effecting  any 
adjustment  or  arrangement  favorable  to  China  can  easily  be  con- 
ceived, and  it  has  at  times  been  well  nigh  insurmountable.  On  one 
occasion  or  another  there  is  always  some  Power  who  considers  its 
own  interest  in  the  matter  of  Chinese  customs  tariff  more  im- 
portant than  the  supreme  interests  of  China.  The  experience  of 
the  Chinese  Delegation  in  the  sub-committee  on  tariff,  much  as  it 
has  accomplished,  has  not  altogether  removed  the  ground  for  this 
opinion.  But  as  unanimity  is  required,  the  dissent  of  one  Power 
is  sufficient  to  defeat  and  upset  a  general  arrangement  agreed  to 
by  all  the  others,  while  by  virtue  of  the  most  favored  nation  clause, 
a  concession  or  privilege  granted  by  China  to  one  nation  for  a 
specific  consideration  is  at  once  claimed  by  all  without  regard  to  the 
quid  pro  quo. 

In  view  of  the  inherent  difficulty  and  injustice  of  the  present 
regime,  and  of  the  wholesome  and  desirable  effect  which  restoration 
of  tariff  autonomy  is  sure  to  have  upon  the  trade  and  economic 
development  of  China,  as  well  as  upon  the  evolution  of  her  fiscal 
system,  the  Chinese  Delegation  feel  in  duty  bound  to  declare  that 
though  this  committee  does  not  see  its  way  to  consider  China's 


TAEIFF  AUTONOMY  79 

claim  for  the  restoration  of  her  tariff  autonomy,  it  is  not  their 
desire,  in  assenting  to  the  agreement  now  before  you,  to  relinquish 
their  claim ;  on  the  contrary,  it  is  their  intention  to  bring  the  ques- 
tion up  again  for  consideration  on  all  appropriate  occasions  in  the 
future. 

Senator  Underwood,  with  reference  to  what  Dr. 
Koo  had  said,  declared  that  he  did  not  desire  to  dis- 
cuss the  pending  resolution  further  than  he  had 
already  done,  but  he  wished  to  make  one  statement 
before  the  committee  adjourned  that  morning.  He 
had  listened  with  much  interest  to  the  statement  read 
by  Mr.  Koo  in  reference  to  the  desire  of  China  for 
tariff  autonomy,  which  was  a  very  natural  and  proper 
desire.  Any  great  government  naturally  wished  the 
time  might  come  when  she  might  control  her  own 
finances,  notwithstanding  that  she  yielded  the  con- 
trol herself.  So  far  as  he  was  concerned,  he  gladly 
welcomed  an  opportunity,  when  it  could  be  done,  of 
restoring  to  China  her  entire  fiscal  autonomy ;  but  he 
thought  it  was  fair  to  the  sub-committee  and  to  the 
members  of  this  committee  to  say  this — and  it  was 
in  line  with  the  resolution  pending — that  he  was  sure 
this  sub-committee  and  the  committee  to  which  he  was 
now  addressing  himself  would  gladly  do  very  much 
more  for  China  along  all  lines  if  conditions  in  China 
were  such  that  the  outside  Powers  felt  they  could  do 
so  with  justice  to  China  herself.  He  did  not  think 
there  was  any  doubt  in  the  minds  of  the  men  on  the 
sub-committee  as  to  the  question  that  if  China  at 
present  had  the  unlimited  control  of  levying  taxes 
at  the  customs  house,  in  view  of  the  unsettled  condi- 
tions now  existing  in  China,  it  would  probably  work, 
in  the  end,  to  China's  detriment  and  to  the  injury  of 


80  CHINA  AT  THE  CONFERENCE 

the  world ;  and  lie  thought  that  had  more  to  do  with 
the  sub-committee's  not  making  a  full  and  direct 
response  to  Mr.  Koo's  request  than  anything  else. 
He  was  sure  there  was  no  desire  on  the  part  of  the 
other  powers  to  be  selfish,  or  not  to  recognize  the  full 
sovereignty  of  China,  and  he  only  rose  to  say  this, 
that  if  he  was  a  judge  of  the  situation,  a  judge  of 
the  temper  of  conditions  in  the  balance  of  the  world, 
he  felt  sure  that  when  China  herself  established  a 
parliamentary  government  of  all  the  Provinces  of 
China  and  dispensed  with  the  military  control  that 
now  existed  in  many  of  the  Provinces  of  China,  so 
that  the  outside  Powers  might  feel  that  they  were 
dealing  with  a  government  that  had  entire  and  abso- 
lute and  free  control  of  the  situation,  China  could 
expect  to  realize  the  great  ideals  of  sovereignty  that 
she  asked  for  at  this  table. 

Senator  Underwood,  in  behalf  of  the  sub-commit- 
tee, then  recommended  that,  as  the  agreements  which 
had  been  reported  related  to  two  different  matters, 
namely,  (1)  the  immediate  revision  of  the  present 
tariff  in  accordance  with  existing  treaties,  and  (2) 
other  matters  involving  the  modification  of  existing 
treaties,  they  should  be  referred  to  the  Drafting  Com- 
mittee with  a  view  to  putting  the  agreement  into  final 
form  and  separating  the  principles  which  could  go 
into  immediate  force  from  those  which  would  require 
treaty  ratification  by  the  Powers. 

Drafting  Committee:  Report  from.  This  sugges- 
tion was  adopted  and  the  resolutions  referred  to  the 
Drafting  Committee,  which  reported  them  back  to 


TAEIFF  AUTONOMY  81 

the  eighteenth  session  of  the  Committee  of  the  Whole, 
held  January  16, 1922. 

Mr.  Eoot,  who  made  the  report  in  behalf  of  the 
Drafting  Committee,  said  that  the  sub-committee  on 
Chinese  Revenue  had  suggested  that  those  of  its 
recommendations  which  were  declaratory  in  nature 
should  be  separated  from  those  which  modified  exist- 
ing treaties  and  would  therefore  need  to  be  put  into 
treaty  form.  As  to  the  first,  the  Drafting  Committee 
reported  as  follows : 

Agreement  on  the  Revision  of  the  Chinese  Tariff. 

With  a  view  to  providing  additional  revenue  to  meet  the  needs 
of  the  Chinese  Government,  the  Powers  represented  at  this  Con- 
ference, namely,  the  United  States  of  America,  Belgiimi,  the  British 
Empire,  China,  France,  Italy,  Japan,  the  Netherlands,  and  Portu- 
gal, agree : 

That  the  customs  schedule  of  duties  on  imports  into  Cliina 
adopted  by  the  tariff  revision  commission  at  Shanghai  on  December 
19,  1918,  shall  forthwith  be  revised  so  that  the  rates  of  duty  shall 
be  equivalent  to  5  per  cent  effective  as  provided  for  in  the  several 
commercial  treaties  to  which  China  is  a  party. 

A  revision  commission  shall  meet  at  Shanghai,  at  the  earliest 
practicable  date,  to  effect  this  revision  forthwith  and  on  the  gen- 
eral lines  of  the  last  revision. 

This  commission  shall  be  composed  of  representatives  of  the 
Powers  above  named  and  of  representatives  of  any  additional 
Powers  who  have  treaties  with  China  providing  for  a  tariff  on 
imports  and  exports  not  to  exceed  6  per  cent  ad  valorem  and  who 
desire  to  psurticipate  therein. 

The  revision  shall  proceed  aa  rapidly  as  possible  with  a  view  to 
its  completion  within  four  months  from  the  date  of  the  adoption 
of  this  resolution  by  the  Conference  on  the  Limitation  of  Armament 
and  Pacific  and  Far  Eastern  Questions. 

The  revised  tariff  shall  become  effective  as  soon  as  possible,  but 
not  earlier  than  two  months  after  its  publication  by  the  revision 
commission. 
7 


82  CHINA  AT  THE  CONFERENCE 

The  Government  of  the  United  States,  as  convener  of  the  present 
Conference,  is  requested  forthwith  to  communicate  the  terms  of  this 
resolution  to  the  Governments  of  Powers  not  represented  at  this 
Conference,  but  who  participated  in  the  revision  of  1918,  aforesaid. 

Discussion  as  to  Russia.  Mr.  Root  said  °  that,  since 
the  above  agreement  had  been  authorized  by  the  sub- 
committee on  drafting,  the  suggestion  had  been  made 
that  the  terms  of  the  clause  which  provided  that  the 
revision  commission  should  be  composed  of  represen- 
tatives of  the  Powers  present,  and  of  representatives 
of  any  additional  powers  who  had  treaties  with  China 
providing  for  a  tariff  on  imports  and  exports  not  to 
exceed  5  per  cent,  would  include  Russia,  but  that  it 
would  be  impossible  to  send  notice  to  Russia  or  to 
collaborate  with  Russia  in  such  a  commission  because 
Russia  had  no  government  which  had  been  recognized 
by  any  of  the  Powers  here  present.  In  conversation 
upon  this  subject  with  several  members  of  the  sub- 
committee on  drafting  the  suggestion  had  been  made 
that  an  amendment  should  be  added  to  the  resolution 
inserting  after  the  words  *'  additional  powers  "  the 
words  **  having  governments  at  present  recognized  by 
the  Powers  represented  at  this  conference  ";  and,  if 
that  met  the  views  of  the  members  of  this  committee, 
it  would  hardly  be  worth  while  to  call  the  sub-com- 
mittee on  drafting  together  again,  as  all  its  members 
were  present.  Mr.  Root  therefore  suggested  that  the 
committee  amend  the  report  by  the  inclusion  of  these 
words. 

•  The  report  of  the  discussion  that  follows  is  that  given  in  Senate  Docu- 
ment No.  126. 


TAEIFF  AUTONOMY  83 

Grand  Duchy  of  Luxemburg.  Baron  de  Cartier 
said  he  wished  to  raise  the  question  of  the  position 
in  which  the  Grand  Duchy  of  Luxemburg  would  be 
placed  by  the  resolution  just  read  by  Mr.  Root.  On 
September  2, 1861,  a  treaty  of  commerce  and  naviga- 
tion was  concluded  between  China  and  the  King  of 
Prussia,  the  latter  acting  in  his  own  name  as  well  as 
in  the  name  of  other  members  of  the  Zollverein, 
among  which  was  the  Grand  Duchy  of  Luxemburg. 
When  war  had  been  declared  between  China  and 
Germany,  the  Netherlands  minister  in  Peking, 
Jonkheer  Beelaerts  van  Blokland,  in  charge  of  the 
interests  of  the  Grand  Duchy  in  Peking,  made  repre- 
sentations to  the  Chinese  Government,  in  order  to 
protect  Luxemburg  interests,  as  the  Grand  Duchy  did 
not  go  to  war  with  China.  It  was  Baron  de  Cartier 's 
impression  that  the  Grand  Duchy  was  embraced  in 
the  "additional  governments  "  mentioned  in  the 
resolution,  but  this  should  be  made  clear. 

The  chairman,  Secretary  Hughes,  said  that,  sub- 
ject to  any  observation  to  the  contrarj^  which  might 
be  made,  he  supposed  that  the  Grand  Duchy  would  be 
embraced  within  this  clause  and  would  be  adequately 
represented.  If  there  was  no  objection,  the  com- 
mittee would  so  assume. 

Finland  and  Poland.  Sir  Robert  Borden  inquired 
whether  the  drafting  committee  had  considered  the 
effect  of  the  wording  of  paragraph  4  on  States  which 
were  formerly  part  of  the  Russian  Empire,  but  which 
were  not  independent  Powers  whose  governments  had 
been  recognized.  He  presumed  that  it  was  intended 
that  these  Powers  should  have  the  right  to  be  repre- 


84  CHINA  AT  THE  CONFERENCE 

sented  on  the  revision  commission  and  at  the  special 
conference,  if  they  so  desired. 

Mr.  Balfour  remarked  that  Finland  and  Poland 
had  both  been  recognized. 

Non-Treaty  Powers.  Senator  Underwood  said  that 
he  was  not  sure  that  his  viewpoint  was  the  correct 
one,  but,  as  he  understood  the  situation,  China  was 
sovereign  as  to  her  right  to  levy  taxes  except  in  so  far 
as  she  had  given  away  that  right  by  treaty.  Now  it 
was  proposed  to  change  the  treaty  right  by  which  the 
power  of  the  Republic  of  China  was  at  present  limited 
and  to  offer  an  increase  in  taxation  at  the  customs 
house.  No  country  that  had  not  treaty  relations  with 
China  and  obligations  from  China  growing  out  of 
those  treaties  had  any  right  to  make  any  complaint 
whatever  as  to  what  China  did  in  reference  to  taxes 
at  the  customs  house.  Her  only  binding  obligation 
was  in  respect  to  the  Governments  with  whom  she 
had  signed  treaties.  As  to  the  other  Governments, 
who  would  not  be  represented,  they  could  not  com- 
plain as  a  matter  of  right,  because  they  had  no  estab- 
lished right  in  regard  to  China  (any  more  than  in 
regard  to  the  United  States  or  Japan)  to  control  the 
customs  taxation  of  China. 

On  the  other  hand,  they  could  not  complain  of  any 
undue  advantage  being  taken  of  them,  because  these 
two  papers,  this  resolution  and  the  treaty  that  was 
to  follow,  prescribed  everything  to  their  advantage 
in  providing  that  the  **  open  door  '*  into  China  should 
in  the  future  mean  equal  opportunity  to  all,  whether 
treaty  powers  or  non-treaty  powers,  whether  they 


TARIFF  AUTONOMY  85 

sat  at  the  table  to  reform  this  tariff  or  not.  Every 
one  of  them  would  go  into  China  under  the  same  con- 
ditions and,  therefore,  he  could  not  see  that  any  power 
that  was  not  represented  at  the  table  could  have  any 
right  to  complain,  especially  as  to  this  resolution, 
since  in  it  the  treaty  powers  were  only  complying  with 
their  contract  with  China  heretofore  made. 

The  chairman  said  that  he  supposed  this  clause 
of  the  resolution  defined  those  who  were  to  be  repre- 
sented in  the  proposed  commission.  They  were  the 
Governments  who  were  at  present  recognized  by  the 
powers  represented  at  this  conference  and  who  had 
treaties  with  China  providing  for  a  tariff. 

Mr.  Koo  said  he  wished  to  add  a  few  words  in 
regard  to  the  actual  situation  in  China  with  reference 
to  non-treaty  powers.  According  to  the  paragraph 
under  discussion,  for  a  country  to  have  a  representa- 
tive on  the  commission  mentioned  therein  it  was 
necessary  for  several  conditions  to  be  present  at  the 
same  time.  One  of  these  conditions  was  that  the 
power  in  question  should  have  a  treaty  with  China  in 
regard  to  import  customs  duties.  Other  powers  (i.  e., 
those  not  having  such  treaties)  were  necessarily  pre- 
cluded. As  a  matter  of  fact,  the  Chinese  Government 
had  already  promulgated  and  put  in  force  some  time 
before  a  special  tariff  for  non-treaty  powers.  If  a 
lower  rate  than  the  5  per  cent  authorized  by  the 
existing  treaties  had  been  granted  to  one  of  these 
non-treaty  Powers,  such  a  reduction  would  probably 
have  to  be  made  applicable  to  all  under  the  most- 
favored-nation  clause.    But  the  present  rate  of  im- 


86  CHINA  AT  THE  CONFERENCE 

port  duties  on  the  goods  of  the  non-treaty  powers 
was  higher  than  5  per  cent.  In  that  respect  the  prin- 
ciple of  the  ''  open  door,"  under  the  present  Chinese 
law,  could  not  be  invoked  to  include  non-treaty 
powers. 

Sir  Robert  Borden  reverted  to  the  point  which  he 
had  already  raised.  He  said  that  if  the  Government 
of  Russia  were  recognized  Russia  would  obviously  be 
entitled  under  Paragraph  IV  of  the  resolution  to  be 
invited  to  send  representatives  to  the  proposed  con- 
ference. But  the  present  Russian  Government  was 
not  recognized.  On  the  other  hand  two  States  whose 
territories  were  formerly  part  of  the  Russian  Empire 
— ^namely,  Finland  and  Poland — were  recognized,  and 
the  question  the  committee  had  to  decide  was  whether 
the  convening  power  would  be  bound  to  ask  these  two 
States  to  send  representatives  to  the  conference.  The 
question  might  be  taken  into  consideration  after- 
wards, but  in  his  opinion  it  would  be  necessary  at 
some  stage  to  determine  whether  or  not  Poland  and 
Finland  had  succeeded  to  Russia's  rights  in  respect 
of  treaties  which  the  former  Russian  Empire  had 
concluded  with  China. 

The  delegations  being  polled,  each  voted  affirma- 
tively, and  the  chairman  announced  that  the  resolu- 
tion had  been  unanimously  adopted. 

Draft  of  Treaty.  With  regard  to  matters  that 
would  require  a  treaty  or  convention  between  the 
Powers,  Mr.  Root,  on  behalf  of  the  Drafting  Com- 
mittee, then  submitted  the  following  resolutions  re- 
garding revision  of  Chinese  customs  duties : 


TAEIFF  AUTONOMY  87 

With  a  view  to  increasing  the  revenues  of  the  Chinese  Govern- 
ment, the  United  States  of  America,  Belgium,  the  British  Empire, 
China,  France,  Italy,  Japan,  the  Netherlands,  and  Portugal  agree : 

I.  That  immediate  steps  be  taken  through  a  special  conference,  to 
be  composed  of  representatives  of  the  contracting  Powers  and  other 
Powers  which  adhere  to  this  convention,  to  prepare  the  way  for  the 
speedy  abolition  of  likin  and  for  the  fulfillment  of  the  other  con- 
ditions laid  down  in  Article  VIII  of  the  Treaty  of  September  5, 
1902,  between  Great  Britain  and  China,  in  Articles  IV  and  V  of 
the  Treaty  of  October  8, 1903,  between  the  United  States  and  China, 
and  in  Article  I  of  the  Supplementary  Treaty  of  October  8,  1903, 
between  Japan  and  China,  with  a  view  of  levying  the  surtaxes  pro- 
vided in  those  articles. 

The  special  conference  shall  meet  in  China  within  three  months 
after  the  date  of  the  ratification  of  this  convention  on  a  day  and  at 
a  place  to  be  designated  by  the  Chinese  Government. 

II.  The  special  conference  shall  consider  the  interim  provisions 
to  be  applied  prior  to  the  abohtion  of  Hkin  and  the  fulfillment  of 
the  other  conditions  laid  down  in  the  articles  of  the  treaties  above 
mentioned;  and  it  shall  authorize  the  levying  of  a  surtax  on  duti- 
able imports  as  from  such  date  for  such  purposes  and  subject  to 
such  conditions  as  it  may  determine. 

The  surtax  shall  be  at  a  uniform  rate  of  2^  per  cent  ad  valorem, 
except  in  the  case  of  certain  articles  of  luxury,  which,  in  the  opinion 
of  the  special  conference,  can  bear  a  greater  increase  without  unduly 
impeding  trade,  and  upon  which  the  total  surtax  shall  not  exceed 
5  per  cent. 

III.  That  following  the  immediate  revision  of  the  customs 
schedule  of  duties  on  imports  into  China  as  provided  for  in  a  resolu- 
tion adopted  by  the  representatives  of  all  powers  signatory  to  this 
convention  at  a  plenary  session  of  the  Conference  on  the  Limitation 
of  Armament  held  in  the  City  of  Washington  on  the  —  day  of 
January,  1922,  there  shall  be  a  further  revision  to  take  effect  at  the 
expiration  of  four  years  following  the  completion  of  the  aforesaid 
revision  in  order  to  insure  that  the  customs  duties  shall  correspond 
to  the  ad  valorem  rates  fixed  by  the  special  conference  herein  pro- 
vided for. 


88  CHINA  AT  THE  CONFERENCE 

That  following  this  revision  there  shall  be  periodical  revisions  of 
the  customs  schedule  of  duties  on  imports  into  China  every  seven 
years  for  the  same  purpose  in  lieu  of  the  decennial  revision  author- 
ized by  existing  treaties  with  China. 

That  in  order  to  prevent  delay  such  periodical  revisions  shall 
be  effected  in  accordance  with  rules  to  be  settled  by  the  special  con- 
ference mentioned  in  Article  I  herein. 

IV.  That  in  all  matters  relating  to  customs  duties  there  shall  be 
effective  equality  of  treatment  and  of  opportunity  for  all  Powers 
parties  to  this  convention. 

V.  That  the  principle  of  uniformity  in  the  rate  of  customs  duties 
levied  at  all  the  land  and  maritime  frontiers  of  China  is  hereby 
recognized;  that  the  special  conference  above  provided  for  shall 
make  arrangements  to  give  practical  effect  to  this  principle ;  and  it 
is  authorized  to  make  equitable  adjustments  in  those  cases  in  which 
the  customs  privilege  to  be  abolished  was  granted  in  return  for 
some  local  economic  advantage. 

In  the  meantime,  any  increase  in  the  rates  of  customs  duties 
resulting  from  tariff  revision  or  any  surtax  hereafter  imposed,  in 
pursuance  of  the  present  convention,  shall  be  levied  at  a  uniform 
rate  ad  valorem  at  all  land  and  maritime  frontiers  of  China. 

YI.  That  the  charge  for  transit  passes  shall  be  at  the  rate  of 
2^  per  cent  ad  valorem,  until  the  arrangements  contemplated  in 
Article  I  herein  come  into  force. 

VII.  That  the  powers  not  signatory  to  this  convention,  but  whose 
present  treaties  with  China  provide  for  a  tariff  on  imports  and  ex- 
ports not  to  exceed  6  per  cent  ad  valorem,  shall  be  invited  to  adhere 
to  the  present  convention,  and  upon  such  adherence  by  all  of  them 
this  convention  shall  override  all  provisions  of  treaties  between 
China  and  the  respective  contracting  powers  which  are  inconsistent 
with  its  terms. 

That  the  United  States  Government,  as  convener  of  the  present 
conference,  undertake  to  make  the  necessary  communications  for 
this  purpose  and  to  inform  the  Governments  of  the  contracting 
powers  of  the  replies  received. 

VIII.  Ratification  clause  of  usual  form. 


TAEIFF  AUTONOMY  89 

Mr.  Root  said  that,  in  accordance  with  the  resolu- 
tion already  adopted,  there  should  be  inserted  some 
words  in  Article  VII,  so  that  it  would  read : 

That  the  powers  not  signatory  to  this  convention  having  Govern- 
ments at  present  recognized  by  the  powers  represented  at  this  con- 
ference, but  whose  present  treaties  vnth  China  provide  for  a  tariff 
on  imports  and  exports  not  to  exceed  5  per  cent  ad  valorem,  shall 
be  invited  to  adhere  to  the  present  convention,  and  upon  such  ad- 
herence by  all  of  them  this  convention  shall  override  all  provisions 
of  treaties  between  China  and  the  respective  contracting  powers 
which  are  inconsistent  with  its  terms. 

Mr.  Root  said,  with  reference  to  the  first  paragraph 
of  Article  III,  that  the  sense  of  the  paragraph  was 
that,  following  the  immediate  revision  of  the  sched- 
ules or  duties  which  the  commission  would  raise  under 
the  resolution  that  had  been  adopted,  there  should  be 
a  further  revision  to  take  effect  at  the  expiration  of 
four  years  following  the  completion  of  the  aforesaid 
revision  in  ordei:  to  insure  that  the  customs  duties 
should  correspond  to  the  ad  valorem  rates  fixed  by 
the  special  conference  as  in  the  treaty.  It  was  not  to 
make  the  customs  duties  correspond  to  the  ad  valorem 
rates  in  force,  but  to  the  ad  valorem  rates  fixed  by  the 
special  conference,  and  to  make  the  customs  duties 
correspond  to  the  new  ad  valorem  rates,  if  there 
should  be  any,  not  the  ad  valorem  rates  already  in 
force. 

Mr.  Sarraut  said  that  he  would  ask  to  be  enlight- 
ened with  respect  to  Article  I,  especially  with  respect 
to  the  phrase  **  and  other  powers  which  adhere  to 
this  convention  to  prepare  the  way  for  the  speedy 
abolition  of  likin  and  for  the  fulfillment  of  the  other 
conditions  laid  down  in  Article  VIII  of  the  treaty 


90  CHINA  AT  THE  CONFEBENCE 

of  September  5,  1902,  between  Great  Britain  and 
China,  in  Articles  IV  and  V  of  the  treaty  of  October 
8, 1903,  between  the  United  States  and  China,  and  in 
Article  I  of  the  supplementary  treaty  of  October  8, 
1903,  between  Japan  and  China,  with  a  view  to  levy- 
ing the  surtaxes  provided  in  those  articles." 

Mr.  Sarraut  said  he  believed  that  there  had  been 
certain  changes  from  the  first  text  prepared  by  Mr. 
Kammerer  in  which  special  reference  had  been  made 
to  **  Articles  TV  and  VIII  of  the  treaties  between  the 
United  States  and  China  and  to  Article  I  of  the  sup- 
plementary treaty  of  October  8  between  Japan  and 
China."  These  references  had  not  been  made  in  the 
original  text.  Referring  to  the  text  of  these  treaties, 
Mr.  Sarraut  said  he  would  like  to  ask  the  following 
questions:  Was  it  the  intention  of  the  articles  as 
drafted  to  oblige  all  nations  to  bind  themselves  by  the 
terms  of  the  most-favored-nation  clause  or  was  this 
done  by  error?  If  an  automatic  application  of  the 
most-favored-nation  clause  was  intended,  he  must 
make  a  reservation,  as  his  own  Government  might 
not  agree.  He  believed  that  it  would  be  better  to 
omit  the  clauses  referring  to  the  most-favored-nation 
clause  or  to  say  that  it  was  not  desired  to  apply  them 
automatically. 

Mr.  Root  said  the  treaties  referred  to  in  Article  I 
were  the  same  treaties  which  were  referred  to  in  the 
original  report  of  the  committee  on  Chinese  revenue. 
The  only  difference  was  that  this  draft  specified  the 
particular  articles  of  those  treaties  which  were  sup- 
posed to  be  relevant  to  the  subject  matter  of  this 
instrument.    It  was  rather  to  limit-  than  to  enlarge 


TARIFF  AUTONOMY  91 

the  reference  in  the  original  report,  and  the  condi- 
tions which  were  referred  to  in  Article  I  were  the 
conditions  upon  which  the  powers  entering  into  these 
treaties  with  China  undertook  to  consent  to  the 
increase  of  duties ;  i.  e.,  they  agreed  to  consent  to  an 
increase  of  duties  on  condition  that  China  did  thus 
and  so.  No  conditions  were  imposed  upon  any  other 
power,  so  that  no  obligation  whatsoever  could  be 
found  in  this  article  upon  any  of  the  powers  other 
than  China  in  respect  of  the  most-favored-nation 
clauses.    That  was  his  imderstanding  of  it. 

Mr.  Sarraut  said  that  he  took  note  of  Mr.  Root^s 
statements,  and  would  refer  to  them,  if  necessary. 
He  felt  he  must  point  out,  however,  that  if  the  text 
of  the  resolutions  alone  was  considered  it  did  not 
directly  appear  that  the  most-favored-nation  clause 
did  not  automatically  apply.  In  view  of  Mr.  Root's 
explanation,  however,  he  would  not  insist  further 
upon  the  matter. 

Sir  Auckland  Geddes  said  he  assumed  that  it  was 
quite  clear — this  was  the  way  in  which  he  read  this 
paragraph — that,  so  far  as  the  treaties  in  question 
bound  countries  other  than  China  at  the  present  time, 
they  would  bind  only  those  coimtries  afterwards,  and 
that  the  provisions,  for  instance,  of  the  Chinese- 
American  treaty  would  not  be  extended  to  Chinese- 
British  ?    Mr.  Root  said  he  had  no  doubt  of  that. 

A  vote  being  taken,  the  draft  agreements  and  reso- 
lutions were  then  unanimously  approved  by  the  Com- 
mittee of  the  Whole.  However,  before  being  reported 
to  the  Conference  in  plenary  session,  these  agreements 
were  further  discussed  and  amended  in  the  last  ses- 


92  CHINA  AT  THE  CONFERENCE 

sion  of  the  Committee  when  they  were  brought 
before  it  in  what  was  then  expected  to  be  their  final 
form. 

Mr.  Balfour  at  that  time  raised  the  point  that,  as 
then  drafted,  the  reform  of  the  Chinese  tariff  which 
all  the  Delegations  desired  would  not  come  into  effect 
until  every  Power  that  had  a  treaty  with  China  pro- 
viding for  an  export  and  import  tariff  of  not  greater 
than  five  per  cent  had  given  its  adherence  to  the  agree- 
ments then  before  the  Committee.  He  suggested, 
therefore,  that  there  should  be  inserted  in  the  draft 
the  words  **  the  provisions  of  the  present  treaty  shall 
override  all  stipulations  of  treaties  between  China 
and  the  respective  Powers  which  are  inconsistent 
therewith,  other  than  stipulations  according  most- 
favored-nation  treatment."  The  effect  of  this  pro- 
vision would  of  course  be  that  so  long  as  any  Power, 
not  party  to  the  proposed  treaty,  should  refuse  adher- 
ence to  it,  and  therefore,  under  its  treaties  with  China, 
be  entitled  to  claim  of  China  that  imports  from  itself 
to  China  or  exports  from  China  to  itself  should  not 
bear  a  tariff  higher  than  five  per  cent,  the  other 
Powers,  signatory  to  the  treaty  would  themselves  be 
entitled  to  make  the  same  claim  upon  China. 

Senator  Underwood's  View  as  to  Power  of  China  to 
Denounce  TariflF  Treaties.  This  proposal  gave  to 
Senator  Underwood  an  opportimity,  in  supporting 
Mr.  Balfour's  amendment,  to  make  an  argiunent  with 
regard  to  China's  obligations  under  her  tariff  treaties 
that  is  of  sufficient  interest  to  deserve  quotation.  As 
reported  in  the  Minutes  of  the  Committee,  Senator 
Underwood  said : 


TARIFF  AUTONOMY  93 

He  might  be  wrong  in  this  matter,  but  he  believed  this  treaty  was 
not  on  the  same  basis  as  many  other  treaties  involving  great  na- 
tional rights.  This  was  a  trade  agreement,  a  trade  contract,  which 
China  had  made  with  the  other  nations  of  the  world,  and  he  thought 
China  had  a  right  to  denounce  these  treaties  when  she  thought 
proper.  He  thought  this  was  clearly  her  right,  because  no  question 
of  national  right  was  involved;  it  was  merely  a  question  of  trade 
agreements,  and  agreements  of  that  kind  had  been  made  in  the  past 
to  extend  over  a  period  of  time,  or  an  indefinite  period  of  time, 
and  when  conditions  changed  so  that  they  worked  a  great  disad- 
vantage to  one  or  others  of  the  contracting  parties  it  had  been 
recognized  in  the  past  that  such  trade  conventions  might  be 
eliminated. 

This  might  not  meet  with  the  approval  of  all,  and  he  did  not  say 
it  for  that  purpose ;  he  was  only  stating  his  own  viewpoint.  China 
must  have  this  money  if  she  was  going  tu  function  as  a  government. 
She  had  asked  the  powers  at  this  table  to  grant  her  the  right  to 
raise  these  taxes.  The  nine  powers  had  agreed  with  China  on  a 
plan  which  increased  taxes.  It  seemed  to  him  that  if  one  nation  in 
the  world  stood  out  alone  against  the  sentiment  and  the  consensus 
of  opinion  of  the  nationals  sitting  at  the  table  and  tried  to  prevent 
China  from  getting  this  additional  money — this  revenue  which  was 
necessary  for  her  national  life — the  Chinese  Government  would 
be  entirely  justified  in  denouncing  that  treaty  or  that  agreement. 

He  said  this  because  this  question  might  arise;  one  of  the  con- 
tracting parties  might  say  that  China  must  stand  for  the  future  on 
her  5  per  cent  tariff,  which  would  endanger  the  life  of  the  Chinese 
Government. 

His  opinion  was  that  no  one  power  in  the  world  had  the  right, 
as  against  the  sentiments  expressed  by  the  nine  powers  at  the  table 
and  against  the  desires  of  China,  to  take  such  a  position,  and  he 
believed  that  in  the  high  courts  of  national  morality  such  a  position 
could  well  be  maintained.  If  it  were  not,  all  the  work  of  the  com- 
mittee was  futile;  if  it  were  not,  it  meant  that,  simply  because  a 
nation  60  years  before,  when  she  did  not  feel  that  she  needed  more 
than  5  per  cent  revenue,  had  had  her  customs  houses  enter  into  an 
agreement,  that  nation  must  be  bound  for  the  years,  for  the  decades 
and  the  centuries  to  come,  unable  to  maintain  her  governmental  life. 


94  CHINA  AT  THE  CONFERENCE 

He  did  not  feel,  however,  that  the  matter  was  so  serious,  since 
under  this  agreement  the  opportunity  would  be  given  (for  example) 
to  Spain  and  to  Sweden  to  become  parties  to  it,  and  he  thought  they 
would  accept;  but  if  they  did  not  become  parties  to  it  or  stood  as 
dogs  in  the  manger  preventing  China  from  having  the  opportunity 
of  life  to  which  she  was  entitled,  then  he  thought  the  way  to  carry 
out  this  agreement  would  be  to  denounce  it. 

But  the  nations  represented  on  the  committee  were  entitled  to 
protect  their  rights  to  equal  terms,  and  if  China  did  not  denounce 
her  treaties  and  allowed  imports  from  Spain  and  Sweden  to  enter 
China  imder  a  5  per  cent  duty — if  these  countries  did  not  give  their 
adherence — then  China  must  recognize  her  duty  to  the  nations  repre- 
sented at  the  table  and  let  them  continue  their  imports  into  China 
under  the  5  per  cent  duty.* 

As  a  result  of  this  discussion,  the  following  Article, 
numbered  IX  was  inserted  in  the  draft  treaty. 

The  provisions  of  the  present  treaty  shall  override  all  stipula- 
tions of  treaties  between  China  and  the  respective  Contracting 
Powers  which  are  inconsistent  therewith,  other  than  stipulations 
according  most  favored  nation  treatment. 

Maintenance  of  Existing  Customs  Administration. 

At  this  session  there  was  also  a  discussion  of  the 
declaration  upon  the  part  of  the  Chinese  Delegation 
tha;t  China  had  no  intention  to  effect  any  change 
which  might  disturb  the  present  administration  of 
the  Chinese  Maritime  Customs.  The  question  was 
whether  this  declaration  should  be  signed  by  the 
Chinese  representatives  and  be  made  an  annex  to  the 
treaty. 

Dr.  Koo  pointed  out  that  the  declaration  was  a 
voluntary  one  on  the  part  of  the  Chinese  Govem- 

•  Senator  Underwood  repeated  these  views  in  the  United  States  Senate 
when  the  treaty  was  before  that  body  for  approval. 


TARIFF  AUTONOMY  '  95 

ment ;  that  there  was  no  international  treaty  or  con- 
vention in  which  it  had  been  stipulated;  that  it 
occurred  only  in  two  loan  contracts  to  which  the 
Chinese  Government  was  a  party;  and  that,  there- 
fore, there  was  no  reason  why  China  should  now 
be  called  upon  to  put  the  declaration  into  treaty  form, 
that  is,  have  it  included  in  the  body  of  or  as  an  annex 
to  a  treaty  which  the  Powers  at  the  Conference,  in- 
cluding China,  were  to  sign.  This  view  was  strongly 
supported  by  Senator  Underwood.  He  even  inti- 
mated that  if  the  declaration  were  made  a  part  of 
the  treaty,  he  might  find  it  difficult  to  defend  the 
treaty  before  the  American  people  since  there  were 
many  good  people  in  the  United  States  who  were 
strongly  opposed  to  having  China  coerced  into  an 
obligation  that  was  not  entirely  satisfactory  to  her, 
especially  as  to  a  matter  relating  to  the  administra- 
tion of  her  local  affairs. 

It  was  then  agreed  that  the  declaration  should 
simply  be  placed  upon  the  records  of  the  Conference 
at  the  plenary  session. 

Banks  for  Deposit  of  Customs  Receipts.  In  con- 
nection with  the  question  of  China's  customs  tariff 
there  was  brought  up  by  Mr.  Underwood,  at  the 
twenty-ninth  meeting  of  the  Committee  of  the  Whole, 
the  matter  of  the  deposit  in  the  banks  of  China  of  the 
moneys  collected. 

It  had  been  originally  provided  that  certain  por- 
tions of  the  Chinese  customs  receipts  should  be  set 
apart  for  meeting  the  interest  and  amortization 
charges  on  the  bonds  issued  in  payment  of  the  Boxer 


96  CHINA  AT  THE  CONFERENCE 

Indemnities.  These  had  been  deposited  entirely,  or 
ahnost  entirely,  in  the  Hongkong  and  Shanghai  Bank 
and  the  Russo-Asiatic  Bank.  This,  of  course,  had 
been  of  great  advantage  to  those  institutions,  as  com- 
pared with  the  other  banks  in  China  which  had 
received  no  such  deposits.  In  this  connection  he 
he  would  read  the  following  statement  which  had  been 
submitted  to  the  sub-committee  by  Mr.  Odagiri  in 
behalf  of  the  Japanese  Government: 

Japan  not  only  has  no  objection  to,  but  welcomes,  the  proposal 
that  the  existing  customs  system  of  China  should  not  be  disturbed. 
In  the  meantime  she  must  express  the  hope,  in  view  of  the  important 
position  which  her  Chinese  trade  occupies  in  the  entire  foreign  trade 
of  China  and  Japan's  resulting  large  contribution  to  the  Chinese 
customs  revenues,  that  a  fair  and  suitable  adjustment  may  be 
effected  with  the  above  fact  in  view  in  regard  to  the  future  opera- 
tions of  the  customs  system ;  that  is  to  say,  concerning  such  matters 
as  the  custodian  banks  and  the  proportion  of  foreign  nationals  to  be 
employed  in  the  customs  staff.  We  desire  to  make  it  clear,  however, 
that  this  is  not  proposed  as  a  condition  of  our  acceptance  of  this 
agreement,  but  only  as  a  frank  expression  of  our  desire.  It  is  hoped 
that  such  special  conference  as  is  mentioned  above  in  its  delibera- 
tions upon  the  conditions  involving  questions  such  as  custody  and 
supervision  of  tariff  revenue  should  take  into  consideration  the 
above  expressed  desire  of  Japan. 

The  delegates  of  France,  Italy,  Belgium,  and  Hol- 
land had  associated  themselves  in  this  matter  with  the 
Japanese  delegation. 

Senator  Underwood  said  that  the  deposit  of  the 
revenues  that  had  already  been  allocated  to  the 
Chinese  debts  could  not  be  changed  since  that  was  a 
part  of  the  contract,  but  that  the  surplus  revenues 
were  free  to  be  deposited  in  such  banks  as  might  be 


TARIFF  AUTONOMY  97 

determined  upon.  Providing  for  the  additional  sur- 
tax of  2J  per  cent  the  Special  Conference  which  was 
to  be  convened  at  Shanghai  would  have  the  right, 
with,  of  course,  the  consent  of  China,  to  a  reallocation 
of  these  funds  in  the  various  solvent  banks  in  China. 
The  Conference  at  Washington,  he  thought,  was  not 
in  a  position  to  settle  the  matter. 

Dr.  Koo  upon  this  point  spoke  as  follows : 

Prior  to  the  revolution  of  1911  the  customs  revenue  that  was  col- 
lected in  the  ports  was  all  deposited  in  the  so-called  Chinese  Customs 
Bank,  under  the  supervision  of  Chinese  authorities,  and  the  customs 
administration  itself  did  not  have  the  handling  of  the  money.  They 
issued  receipts  and  clearance  only  on  the  production  by  the  merchant 
of  the  receipts  issued  by  the  Customs  Bank  certifying  that  the 
customs  duties  had  been  paid.  As  the  time  arrived,  from  month  to 
month,  for  the  payment  and  discharge  of  obligations  incurred  for 
the  Boxer  indemnity  and  also  for  the  foreign  debts,  the  money  was 
paid  over.  That  arrangement  proved  very  satisfactory,  and  there 
was  the  testimony  of  the  inspector  general  of  the  customs  on  record 
that  that  arrangement  would  work  very  satisfactorily,  and  that 
there  never  was  a  single  instance  in  which  there  was  any  diflBculty 
in  meeting  the  foreign  obligations  promptly  and  on  the  day  they 
were  due. 

In  the  course  of  the  revolution  of  1911  various  disturbances  broke 
out  in  various  part  of  China,  and  lest  there  might  be  delays  or  inter- 
ference with  the  discharging  of  the  foreign  obligations,  it  was  pro- 
posed that  the  customs  revenues  should  be  deposited  temporarily  in 
certain  foreign  banks  to  which  Senator  Underwood  made  reference 
a  little  while  ago.  While  that  arrangement  was  intended  to  be 
merely  provisional,  however,  the  practice  of  depositing  customs 
revenues  in  those  designated  foreign  banks  continued.  It  had  this 
effect  on  the  commercial  and  financial  situation  in  the  various  cities 
of  importance,  that,  prior  to  the  revolution,  when  money  was  de- 
posited in  the  Chinese  Customs  Bank,  of  course  it  flowed  into  the 
various  channels  of  the  market  to  meet  commercial  and  industrial 
needs  in  each  community,  and  in  that  way  the  money  market  was 
8 


98  CHINA  AT  THE  CONFERENCE 

always  more  or  less  easy  and  there  were  very  few  occasions  when 
crises  of  a  financial  character  arose.  Since  the  new  arrangement 
was  introduced,  however,  of  course  all  the  customs  revenue  went 
into  the  foreign  banks,  and  the  money  was  now  no  longer  quickly 
accessible  to  Chinese  customers  for  legitimate  purposes  of  com- 
merce and  trade  as  it  had  been  heretofore  with  the  result  that  from 
time  to  time  constant  anxiety  prevailed  in  the  Chinese  commerce 
and  trading  communities  because  money  was  scarce  and  tight. 
Therefore,  the  Chinese  bankers  had  made  the  suggestion  more  than 
once,  and  had  drawn  the  attention  of  the  Chinese  Government  to 
the  fact,  that  some  steps  should  be  taken  to  modify  the  present  pro- 
visional arrangement.  He,  therefore,  wished  not  only  to  associate 
himself  with  Senator  Underwood  in  his  suggestion  but  to  add  that 
when  the  time  came  for  considering  the  question  on  the  reallocation, 
if  in  the  opinion  of  the  representatives  at  that  time  conditions  were 
not  yet  such  as  to  permit  a  complete  reversion  to  the  former  practice, 
at  least  a  part  of  the  deposits  should  be  allocated  to  those  Chinese 
banks  which  were  generally  recognized  as  being  sound  and  solvent. 

The  various  resolutions  relating  to  China's  customs 
revenues  were  reported  to  the  Conference  at  the  sixth 
plenary  session,  held  February  4,  1922.  Senator 
Underwood,  who  made  the  report,  introduced  it  with 
the  following  explanatory  statements  which  are 
worthy  of  reproduction  as  an  admirable  historical 
summary  of  the  facts  leading  to  the  situation  which 
the  proposed  treaty  was  intended  to  improve  if  not 
wholly  to  correct. 

It  may  seem  an  anomaly  to  the  people  of  the  world  who  have  not 
studied  this  question  that  this  Conference,  after  declaring  that  it 
recognizes  the  sovereignty  and  territorial  integrity  of  China,  should 
engage  with  China  in  a  compact  about  a  domestic  matter  which  is 
a  part  of  her  sovereignty.  To  announce  the  treaty  without  an  ex- 
planation may  lead  to  misunderstanding,  and  therefore  I  ask  the 
patience  of  the  Conference  for  a  few  minutes  that  I  may  put  in  the 


TARIFF  AUTONOMY  99 

record  a  statement  of  the  historic  facts  leading  up  to  present  condi- 
tions, which  make  it  necessary  that  this  Conference  should  enter  into 
this  agreement. 

The  conclusions  which  have  been  reached  with  respect  to  the 
Chinese  maritime  customs  tariff  are  two  in  number,  the  first  being 
in  the  form  of  an  agreement  for  an  immediate  revision  of  existing 
schedules,  so  as  to  bring  the  rate  of  duty  up  to  a  basis  of  5  per  cent 
effective.  The  second  is  in  the  form  of  a  treaty,  and  provides  for  a 
special  conference  which  shall  be  empowered  to  levy  surtaxes  and  to 
make  other  arrangements  for  increasing  the  customs  schedules  above 
the  rate  of  5  per  cent  effective. 

In  order  to  understand  the  nature  and  the  reasons  for  these  agree- 
ments, it  is  well  to  bear  in  mind  the  historical  background  of  the 
present  treaty  adjustment,  which  places  such  a  large  control  of  the 
Chinese  customs  in  the  hands  of  foreign  powers. 

The  origin  of  the  Chinese  customs  tariff  dates  back  to  the  four- 
tenth  century,  but  the  administrative  system  was  of  such  a  nature 
that  constant  friction  arose  with  foreign  merchants  engaged  in  trade 
with  that  country,  and  culminated  in  an  acute  controversy  relating 
to  the  smuggling  of  opium,  sometimes  known  as  the  Opium  War  of 
1839-1842. 

This  controversy  ended  in  1843  with  the  Treaty  of  Nanking, 
between  China  and  Great  Britain.  The  Treaty  of  Nanking  marked 
the  beginning  of  Chinese  relations  on  a  recognized  legal  basis  with 
the  countries  of  the  Western  World,  and  is  likewise  the  beginning 
of  the  history  of  China's  present  tariff  system. 

By  the  Treaty  of  Nanking  it  was  agreed  that  five  ports  should  be 
opened  for  foreign  trade,  and  that  a  fair  and  regular  tariff  of  export 
and  import  customs  and  other  dues  should  be  published. 

In  a  subsequent  treaty  of  October  8,  1843,  a  tariff  schedule  was 
adopted  for  both  imports  and  exports,  based  on  the  general  rate  of 
3  per  cent  ad  valorem. 

In  1844  the  first  treaty  between  China  and  the  United  States 
was  concluded.  In  this  treaty  the  tariff  upon  which  China  had 
agreed  with  Great  Britain  was  made  an  integral  part  of  its  provi- 
sions, and  most-favored-nation  treatment  was  secured  for  the  United 
States  in  the  following  terms : 


100  CHINA  AT  THE  CONFERENCE 

"  Citizens  of  the  United  States  resorting  to  China  shall  in  no  case 
be  subject  to  other  or  higher  duties  than  are  or  shall  be  required  of 
the  people  of  any  other  nation  whatever,  and  if  additional  advantages 
01  privileges  of  whatever  description  be  conceded  hereafter  by  China 
to  any  other  nation,  the  United  States  and  the  citizens  thereof  shall 
be  entitled  thereupon  to  a  complete,  equal,  and  impartial  participa- 
tion in  the  same." 

In  the  same  year  a  similar  treaty  between  China  and  France  was 
concluded,  and  in  1847  a  like  treaty  was  entered  into  with  Sweden 
and  Norway. 

After  an  interval  of  a  little  over  a  decade,  friction  again  devel- 
oped and  a  war  ensued. 

In  1851,  when  negotiations  were  again  resumed,  silk  had  fallen  in 
value,  prices  of  foreign  commodities  had  changed,  and  the  former 
schedule  of  duties  no  longer  represented  the  rate  of  5  per  cent 
ad  valorem. 

In  1858,  China  concluded  what  was  known  as  the  Tientsin  Treaties 
with  the  United  States,  Russia,  Great  Britain,  and  France. 

The  British  treaty,  which  was  the  most  conprehensive,  being  com- 
pleted by  an  agreement  as  to  the  tariff  and  rules  of  trade,  was  signed 
at  Shanghai  on  November  8,  1858.  By  this  agreement  a  schedule 
of  duties  was  provided  to  take  the  place  of  the  schedule  previously  in 
force.  Most  of  the  duties  were  specific  calculated  on  the  basis  of 
5  per  cent  of  the  then  prevailing  values  of  articles. 

The  tariff  schedule  thus  adopted  in  1858  underwent  no  revision, 
except  in  reference  to  opium,  until  1902. 

The  beginning  of  foreign  administrative  supervision  of  the 
Chinese  maritime  customs  dates  back  to  the  time  of  the  Taiping 
Rebellion,  when,  in  September,  1853,  the  city  of  Shanghai  was  cap- 
tured by  the  Taiping  rebels.  As  a  consequence  the  Chinese  customs 
was  closed  and  foreign  merchants  had  no  offices  to  collect  customs 
duties. 

In  order  to  meet  the  emergency,  the  foreign  consuls  collected  the 
duties  until  June  29, 1854,  when  an  agreement  was  entered  into  with 
the  British,  American,  and  French  consuls  for  the  establishment 
of  a  foreign  board  of  inspectors.  Under  this  agreement  a  board  of 
foreign  inspectors  was  appointed,  and  continued  in  oflBce  until  1858, 


TARIFF  AUTONOMY  101 

when  the  tariff  commission  met  and  agreed  to  rules  of  trade,  of  which 
Article  X  provided  that  a  uniform  customs  system  should  be  en- 
forced at  every  port,  and  that  a  high  officer  should  be  appointed  by 
the  Chinese  Government  to  superintend  the  foreign  trade,  and  that 
this  officer  might  select  any  British  subject  whom  he  might  see  fit 
to  aid  him  in  the  administration  of  the  customs  revenue,  and  in  a 
number  of  other  matters  connected  with  commerce  and  navigation. 
In  1914,  just  as  the  Great  War  was  breaking,  there  were  1357 
foreigners  in  the  Chinese  customs  service,  representing  20  national- 
ities among  a  total  of  7441  employees. 

It  is  appropriate  to  observe  that  the  present  administrative  system 
has  given  very  great  satisfaction  in  the  matter  of  its  efficiency  and 
its  fairness  to  the  interests  of  all  concerned,  and  in  that  connection 
I  desire  to  say  that,  when  the  consideration  of  this  tariff  treaty  was 
before  the  sub-committee  that  prepared  it,  there  was  a  general,  and, 
I  may  say,  universal  sentiment  about  the  table  from  the  delegates 
representing  the  nine  Powers,  that  on  account  of  the  disturbed  con- 
ditions in  China  to-day,  unsettled  governmental  conditions,  it  was 
desirable,  if  it  met  with  the  approval  of  China,  that  there  should  be 
no  disturbance  at  this  time  of  the  present  administration  of  the 
customs  system.  In  response  to  that  sentiment,  which  was  dis- 
cussed at  the  table,  Dr.  Koo,  speaking  for  the  Chinese  Government, 
made  a  statement  which  I  have  been  directed  by  the  full  committee 
to  report  to  this  plenary  session,  which  is  as  follows : 

"  The  Chinese  Delegation  has  the  honor  to  inform  the  Committee 
on  the  Far  Eastern  Questions  of  the  Conference  on  the  Limitation 
of  Armament  that  the  Chinese  Government  have  no  intention  to 
effect  any  change  which  may  disturb  the  present  administration  of 
the  Chinese  maritime  customs." 

Speaking  only  for  myself,  I  hope  that  the  day  may  not  be  far 
distant  when  China  will  have  established  a  parliamentary  govern- 
ment representing  her  people,  and  that  thus  an  opportunity  will 
be  given  her  to  exercise  in  every  respect  her  full  sovereignty  and 
regulate  her  own  customs  tariffs. 

But  for  the  present,  on  account  of  the  disturbed  conditions  in 
China,  it  is  manifest  that  there  must  be  an  agreement  and  under- 
standing between  China  and  the  other  nations  involved  in  her  trade. 


102  CHINA  AT  THE  CONFERENCE 

and  I  want  to  say  that  this  agreement,  as  it  is  presented  to  the 
Conference  to-day,  meets  the  approbation  of  the  representatives  of 
the  Chinese  Government. 

Between  the  period  of  1869  and  1901  a  series  of  agreements  were 
entered  into  which  established  special  tariff  privileges  with  various 
Powers  respecting  movements  of  trade.  This  period  culminated  in 
r.  greatly  involved  state  of  affairs  which  led  to  the  Boxer  Eevolu- 
tion,  out  of  which  grew  the  doctrine  of  the  open  door. 

In  1902,  in  accordance  with  the  terms  of  the  Boxer  protocol,  a 
commission  met  at  Shanghai  to  revise  the  tariff  schedule.  This  re- 
vision applied  only  to  the  import  duties  and  to  the  free  list.  Most 
of  the  duties  were  specific  in  character,  and  the  remainder  were  at 
5  per  cent  ad  valorem.  Non-enumerated  goods  were  to  pay  5  per  cent 
ad  valorem.  All  the  duties  remained  subject  to  the  restrictions  of 
the  earlier  treaties,  and  those  of  the  export  duties  which  are  still 
in  force  are  the  specific  duties  contained  in  the  schedule  of  1858. 

^n  1902  a  treaty  was  concluded  between  China  and  Great  Britain 
which  laid  a  basis  for  the  subsequent  treaties  between  China  and  the 
United  States  and  China  and  Japan  in  1903,  along  similar  lines. 
In  the  preamble  of  the  British  treaty  the  Chinese  Government  under- 
takes to  discard  completely  the  system  of  levying  likin  and  other  dues 
on  goods  at  the  place  of  production,  in  transit,  and  at  destination. 

The  British  Government  in  turn  consents  to  allow  a  surtax  on 
foreign  goods  imported  by  British  subjects,  the  amount  of  this 
surtax  on  imports  not  to  exceed  the  equivalent  of  one  and  one-half 
times  the  existing  import  duty.  The  levy  of  this  additional  surtax 
being  contingent  upon  the  abolition  of  the  likin  has  never  gone  into 
effect,  but  remains,  nevertheless,  the  broad  basis  upon  which  the 
general  schedules  of  Chinese  tariff  duties  may  be  increased. 

It  is  clear  from  the  foregoing  brief  summary  that  two  measures 
were  necessary  in  dealing  with  the  Chinese  customs,  the  first  being 
that  of  the  revising  of  the  tariff  schedules,  as  they  exist,  so  as  to 
make  them  conform  to  the  rate  of  5  per  cent  effective,  as  provided 
by  the  treaty. 

Second,  to  pave  the  way  for  the  abolition  of  the  likin,  which 
constitutes  the  basis  of  higher  rates.  In  the  meantime,  however,  it 
is  recognized  that  the   Chinese  Government  requires   additional 


TAEIFF  AUTONOMY  i03 

revenue,  and,  in  order  that  this  may  be  supplied,  a  special  con- 
ference is  charged  with  the  levying  of  a  surtax  of  2^  per  cent  on 
ordinary  duties,  and  a  surtax  of  5  per  cent  on  the  luxuries,  in  addi- 
tion to  the  established  rate  of  5  per  cent  effective. 

In  1896  an  agreement  was  made  between  Russia  and  China  for 
the  construction  of  the  Chinese  Eastern  Railway,  and  as  a  part  of 
this  agreement,  merchandise  entering  China  from  Russia  was 
allowed  to  pass  the  border  at  one-third  less  than  the  conventional 
customs  duties.  Afterwards,  similar  reductions  were  granted  to 
France,  Japan,  and  Great  Britain,  where  the  merchandise  entered 
China  across  her  land  frontiers  and  not  by  sea. 

This  discrimination  was  unfair  to  the  other  nations,  and  not  the 
least  important  paragraph  in  the  proposed  treaty  is  the  one  which 
abolishes  this  discrimination  entirely. 

Chinese  Statements.  After  the  proposed  treaty  had 
been  read,  Mr.  Sze,  in  behalf  of  the  Chinese  Delega- 
tion, said : 

As  the  views  of  the  Chinese  Delegation  on  the  various  aspects  of 
this  question  have  been  fully  set  forth  in  the  various  statements 
made  by  my  colleague.  Dr.  Koo,  at  several  meetings  of  the  Com- 
mittee on  Far  Eastern  Questions,  I  shall  content  myself,  Mr.  Chair- 
man, with  a  request  that  the  following  statements  be  spread  upon 
the  records  of  this  session,  namely:  the  statement  of  January  6, 
1922;  the  statement  of  January  16,  1922;  and  the  statement  of 
February  3,  1922. 

Dr.  Koo's  statement  of  January  5  has  been  earlier 
quoted.    His  statement  of  January  16  was  as  follows : 

I  wish  to  add  a  few  words  concerning  the  actual  situation  in 
China  with  reference  to  the  non-treaty  Powers. 

According  to  the  draft  resolution  it  was  evident  that  many  con- 
ditions were  required  to  qualify  a  Power  to  participate  in  the  pro- 
posed revision,  and  one  of  the  conditions  was  that  such  a  Power 
should  have  a  treaty  tariff  with  China  on  imports  and  exports.  If 
a  Power  did  not  possess  such  a  qualification  then  she  would  natur- 


104  CHINA  AT  THE  CONFERENCE 

ally  be  precluded  from  taking  part  in  the  revision.  The  Chinese 
Government  had  promulgated  a  national  tariff  for  the  non-treaty 
Powers.  If  the  rates  in  the  national  tariff  were  lower  than  those 
prescribed  in  the  treaty  tariff,  then  all  the  treaty  Powers  could 
inmiediately  enjoy  the  benefit  of  the  lower  rates  through  the  opera- 
tion of  the  most-favored-nation  clause.  Generally,  however,  the 
rates  in  the  national  tariff  were  higher  than  the  rates  in  the  treaty 
tariff.  Therefore,  the  doctrine  of  the  open  door  could  not  be  invoked 
to  reduce  the  application  of  the  Chinese  national  tariff  with  refer- 
ence to  the  non-treaty  Powers. 

Dr.  Koo*s  statement  for  the  Chinese  Delegation, 
made  in  the  Committee  on  Pacific  and  Far  Eastern 
Questions  on  February  3, 1922  was  with  reference  to 
the  declaration  by  China  that  it  had  no  intention  of 
disturbing  the  present  system  of  maritime  customs 
administration.  Dr.  Koo  said  that  this  declaration 
was  a  voluntary  declaration  of  policy  on  the  part  of 
the  Chinese  Government  and  his  colleagues  around 
the  table  would  no  doubt  recall  that  when  he  had  had 
the  honor,  on  behalf  of  his  delegation,  to  present  the 
Chinese  viewpoint  on  the  tariff  question,  he  had  made 
that  declaration  without  any  suggestion  or  request 
from  any  quarter.  He  had  made  it  because  it  repre- 
sented the  policy  of  the  Chinese  Government — as  that 
policy  had  been  pursued  for  many  decades  in  the  past ; 
no  departure  from  this  policy  was  contemplated  at 
the  present  time.  So  far  as  he  was  aware,  there  was 
no  international  treaty  or  convention  in  which  this 
policy  had  been  stipulated.  It  occurred  only  in  two 
loan  contracts  which  the  Chinese  Government  had 
made  in  1896  and  in  1898,  with  two  groups  of  for- 
eign bankers.  Of  course,  those  contracts  were  still  in 
force  and  their  terms  were  still  binding.    He  there- 


TARIFF  AUTONOMY  105 

fore  desired  to  say  that,  when  this  subject  had  been 
brought  up  in  the  sub-committee,  he  did  not  recall 
that  any  question  of  signature  had  been  raised.  If 
he  remembered  correctly  the  form  in  which  it  was 
reported  to  this  committee  by  the  chairman  of  the 
sub-committee  some  time  before  was  exactly  the  form 
which  the  members  of  the  sub-committee  had 
accepted.  He  felt  certain  that  his  colleagues  around 
the  table  would  not  wish  to  make  a  treaty  obligation, 
an  international  obligation,  out  of  a  matter  which  fell 
within  the  domestic  policy  of  the  Chinese  Govern- 
ment. He  felt  certain  that,  thus  explained,  his  col- 
leagues would  be  perfectly  satisfied  with  this  declara- 
tion of  policy,  which  was  made  voluntarily  in  the 
original  instance  and  made  in  all  good  faith,  and 
therefore  he  wished  to  say  that,  so  far  as  the  Chinese 
Delegation  were  concerned,  they  did  not  feel  quite 
the  necessity  of  putting  it  in  just  the  form  in  which 
it  had  been  suggested. 

Mr.  Koo  said  that  he  also  wished  to  remind  the 
members  of  the  committee,  who  had  sat  on  Senator 
Underwood's  sub-committee  on  Chinese  tariff,  of  the 
statement  which  he  (Mr.  Koo)  had  made  in  the  sub- 
committee that  that  declaration  of  intention  not  to 
disturb  the  present  administration  could  not  be 
reasonably  construed  to  preclude  the  Chinese  people 
from  realizing  a  legitimate  aspiration  to  make  the 
Chinese  maritime  customs  ser\dce  an  institution  more 
national  in  character.  Though  the  present  system  of 
administration  had  been  in  existence  for  nearly  60 
years,  very  few  Chinese  had  been  trained  by  that  ser- 
vice.   Out  of  44  Commissioners  of  Customs,  distrib- 


106  CHINA  AT  THE  CONFERENCE 

uted  among  the  treaty  ports,  lie  was  not  aware  of  a 
single  post  being  at  present  occupied  by  a  Chinese. 
He  had  no  desire  to  make  any  particular  comment  on 
this  state  of  affairs,  but  he  merely  wished  to  throw 
some  light  on  the  subject  in  order  to  make  clear  the 
point  he  had  in  mind.  The  services  of  the  present 
maritime  customs  administration  had  been  valuable 
and  efficient,  as  had  been  often  testified  to  by  Chinese 
officials  in  many  ways,  but  there  was  nevertheless  a 
very  general  feeling  on  the  part  of  the  Chinese  people 
that  more  Chinese  should  be  trained  to  assume  the 
functions  of  the  more  responsible  posts  in  the  service. 
Mr.  Koo  felt  confident,  however,  that  in  suggesting  to 
give  the  Declaration  of  the  Chinese  Delegation  the 
solemnity  of  a  public  announcement  at  a  plenary 
session  of  the  Conference,  his  friend  and  colleague, 
Mr  Balfour,  had  no  desire  to  see  the  policy,  embodied 
in  the  declaration,  invested  with  the  character  of 
permanency.  Senator  Underwood's  statement  that 
the  present  customs  treaty  was  drawn  up  to  meet  only 
the  present  temporary  conditions  in  China  coincided 
with  the  understanding  of  the  Chinese  Delegation  and 
the  aspirations  of  the  Chinese  people,  who  looked 
eagerly  toward  the  earliest  restoration  of  full  tariff 
autonomy. 

I  may  add  [said  Mr.  Sze  at  the  plenary  session  of  the  Conference 
on  February  4]  that  the  present  seeming  disarray  and  unrest  in 
China  is  only  a  transition,  unavoidable  in  the  great  change  of  a 
country  from  a  despotic  form  of  government  to  that  of  a  democratic 
republic.  This  has  been  the  experience  of  all  the  countries  of  the 
world.  The  Chinese  people  are  fully  convinced  that,  with  their 
genius  and  their  experience  of  four  thousand  years  of  government, 
they  will  be  able  to  evolve  at  an  early  date,  a  united  and  strong 
China. 


TARIFF  AUTONOMY  107 

Upon  being  put  to  vote,  the  treaty  relating  to 
China's  tariff  was  unanimously  adopted  by  the  Con- 
ference, and  its  official  text,  as  signed  by  the  nine 
Powers  on  February  6,  1922,  will  be  found  in  the 
appendix  to  this  volume/ 


*  It  is  possible  that  some  misapprehension  may  arise  from  certain  remarks 
made  by  Senator  Underwood  in  the  United  States  Senate  at  the  time  the 
Tarifif  Treaty  was  under  consideration  by  that  body.  Senator  Under- 
wood at  that  time,  defending  the  treaty,  said  that  it  has  met  the  wishes 
of  the  Chinese  Delegation.  It  is  true  that  the  Chinese  Delegation  pre- 
ferred that  the  Conference  should  adopt  the  treaty  rather  than  that  no 
agreement  should  be  reached  and  thus  China  obtain  no  reUef  whatever 
in  the  matter  of  its  maritime  customs.  But,  as  the  foregoing  account  has 
shown,  the  Chinese  Delegation  never  departed  from  its  desire  that  China 
should  obtain  complete  tariff  autonomy  at  as  early  a  date  as  the  Powers 
might  be  willing  to  agree  to  it. 


CHAPTER  VIII 
Regarding  Armed  Forces  In  China 


Resolution  of  the  Powers  Other  Than  China 

Proposed  Resolution.  It  has  already  been  pointed 
out  that  the  Powers  represented  in  the  Conference 
expressed  some  question  as  to  whether  China  would 
benefit  by  its  Government's  deriving  larger  revenues 
from  the  maritime  customs  so  long  as  there  was  a 
possibility  or  probability  that  increased  sums  of 
money  would  thus  be  made  available  for  expenditure 
upon  the  military  forces  stationed  throughout  the 
country.  At  the  seventeenth  meeting  of  the  Com- 
mittee on  Pacific  and  Far  Eastern  Questions,  in 
reporting  the  conclusions  of  the  sub-committee  on 
Chinese  Revenue,  Senator  Underwood  called  atten- 
tion to  the  fact  that  the  sub-committee  had 
realized  that  the  matter  of  supreme  importance 
that  had  come  before  it  was  to  secure  to  the  Chinese 
Government  sufficient  revenues  to  maintain  properly 
a  stable  and  safe  government,  but  that  the  committee 
had  realized  that  the  maintenance  in  China  of  large 
military  forces  was  a  serious  drain  on  the  finances  of 
China  and  materially  affected  the  question  of  raising 
revenues,  and,  also,  that  the  continued  maintenance 
of  these  forces  was  in  contravention  of  the  great  prin- 
ciples of  the  Conference  which  looked  to  the  disarma- 
ment of  nations  and  the  securing  of  the  peace  of  the 
world.  Senator  Underwood  thereupon  read  the  fol- 
ios 


AEMED  FOECES  IN  CHINA  10» 

lowing  resolution  which  the  sub-committee,  the 
Chinese  Delegate  not  voting,  had  adopted  on  January 
3,  1922,  as  an  annex  to  its  report  on  Chinese  revenue 
and  tariff: 

The  members  of  the  sub-committee  in  studying  the  question  of 
increasing  the  customs  tariff  rates  to  meet  the  urgent  needs  of  the 
Chinese  Government  have  been  deeply  impressed  with  the  severe 
drain  on  China's  public  revenue  through  the  maintenance  of  exces- 
sive military  forces  in  various  parts  of  the  country.  Most  of  these 
forces  are  controlled  by  the  mihtary  chiefs  of  the  provinces,  and 
their  continued  maintenance  appears  to  be  mainly  responsible  for 
China's  present  unsettled  political  conditions.  It  is  felt  that  large 
and  prompt  reduction  of  these  forces  will  not  only  advance  the  cause 
of  China's  political  unity  and  economic  development  but  hasten  her 
financial  rehabilitation.  Therefore,  without  any  intention  to  inter- 
fere in  the  internal  problems  of  China,  but  animated  by  the  sincere 
desire  to  see  China  develop  and  maintain  for  herself  an  effective 
and  stable  government,  alike  in  her  own  interest  and  in  the  general 
interest  of  trade,  and  inspired  by  the  spirit  of  this  conference  whose 
aim  is  to  reduce  through  the  limitation  of  armament  "  the  enormous 
disbursements  "  which  "  manifestly  constitute  the  greater  part  of 
the  encumbrance  upon  enterprise  and  national  prosperity,"  the  sub- 
committee venture  to  suggest  for  the  consideration  of  the  committee 
the  advisability  of  laying  before  the  conference  for  its  adoption  a 
resolution  expressing  the  earnest  hope  of  the  conference  and  em- 
bodying a  friendly  recommendation  to  China  that  immediate  and 
effective  steps  be  taken  by  the  Chinese  Government  to  reduce  the 
aforesaid  military  forces  and  expenditure. 

Chinese  Statement.  At  the  time  this  resolution  had 
been  adopted,  by  the  sub-committee,  Dr.  Koo,  in 
behalf  of  the  Chinese  Government,  made  the  follow- 
ing statement: 

The  hope  for  effective  reduction  of  military  forces  and  expendi- 
tures in  China  as  expressed  by  the  Chairman  coincides  completely 


110  CHINA  AT  THE  CONFERENCE 

with  the  desire  and  determination  of  the  Government  and  people 
of  China.  Elnowing  the  profound  sentiment  of  sympathy  and 
disinterested  friendship  which  the  United  States  always  entertains 
towards  my  country,  and  to  which  our  Chairman  has  so  frequently 
given  expression  in  the  deliberations  of  this  body,  and  feeling  con- 
fident that  the  suggestion  is  animated  by  the  best  of  intentions, 
I  do  not  hesitate  to  say  that  I  have  no  objections  to  it  [the  resolu- 
tion] ;  and  though  naturally  I  wish  to  abstain  from  voting  on  it 
myself,  I  nevertheless  appreciate  the  spirit  in  which  it  is  moved.* 

On  January  20,  at  its  twenty-second  meeting,  the 
Resolution,  redrafted,  was  approved  by  the  Com- 
mittee of  the  Whole  on  Pacific  and  Far  Eastern 
Questions. 

Statement  by  Sir  Robert  Borden.  In  support  of  its 
adoption.  Sir  Robert  Borden  said  that  its  presenta- 
tion was  **  inspired  by  a  sincere  and  earnest  wish  to 
aid  the  purpose  of  the  Chinese  people  in  establishing 
stable  government  and  in  freeing  the  country  from 
the  incubus  of  excessive  militarism."  The  existing 
situation,  he  said,  though  it  had  existed  several  years 
was  wholly  alien  to  the  habits  and  traditions  of  the 
Chinese  people.    Continuing,  Sir  Robert  said: 

Up  to  the  present  there  had  been  an  unfortunate  lack  of  such 
organizing  capacity  as  would  establish  a  strong  and  stable  central 
Government  and  bring  the  country  once  more  under  its  effective 
direction  and  control.  For  such  a  purpose  the  provision  of  great 
revenues  or  the  placing  of  large  funds  at  the  disposal  of  a  weak 
administration  was  not  of  itself  effective.  So  long  as  the  military 
governors  retained  their  present  dominating  authority  and  influ- 
ence such  financial  resources  would  probably  be  absorbed  to  a  very 

*  There  is  some  reason  to  believe  that  the  Chinese  Delegation  was  willing 
to  accept  the  proposed  resolution  of  the  Powers  because  it  forestalled  any 
movement  to  create  a  commission  to  make  a  general  inquiry  into  con- 
ditions of  order  in  China. 


ARMED  FORCES  IN  CHINA  111 

great  extent  by  these  military  chiefs  instead  of  being  employed  to 
cut  down  their  power. 

Exact  accuracy,  Sir  Robert  Borden  continued,  in  any  statistics 
of  military  forces  and  expenditure  in  China  at  the  present  time 
could  not  be  expected;  but  reasonable  estimates  placed  the  total 
number  of  men  under  arms  at  not  less  than  one  million ;  at  least  the 
payroll  probably  included  that  number.  It  was  confidently  asserted 
that  more  than  half  of  the  total  revenues  of  the  country  were  em- 
ployed in  the  upkeep  of  these  forces.  They  had  not  been  raised  for 
the  defense  of  the  country  against  outside  aggression;  on  the  con- 
trary they  were  really  maintained  for  the  purpose  of  civil  war  and 
when  on  active  service  they  were  fighting  against  their  own  country- 
men enlisted  under  the  banner  of  some  other  military  chieftain. 
However  in  one  province,  which  was  said  to  be  exceptionally  well 
governed  by  a  man  who  devoted  his  whole  attention  to  the  welfare 
and  prosperity  of  his  district,  a  considerable  military  force  main- 
tained as  a  necessity  to  his  prestige  was  made  to  do  duty  in  the  con- 
struction of  excellent  roads.  In  that  province  the  progress  and  ad- 
vancement of  the  people  were  said  to  be  quite  remarkable  and  they 
gave  an  illustration  of  what  the  Chinese  people  might  accomplish 
under  good  government. 

The  forces  enlisted  under  the  various  military  chieftains  were 
said  to  regard  their  military  duties  as  entirely  occupational  and  it 
was  believed  that  they  would  be  quite  ready  to  accept  employment 
in  the  construction  of  railways,  highways,  and  otherwise,  provided 
the  arrears  in  their  pay  were  made  good. 

The  weakness,  and  indeed  the  impotency,  of  the  central  Govern- 
ment, so  far  as  a  great  portion  of  the  country  is  concerned,  must 
necessarily  be  a  matter  of  concern  to  the  other  powers.  The  Chinese 
people  had  developed  a  high  civilization  which,  in  some  of  its  char- 
acteristics, afforded  a  notable  lesson  to  the  nations  of  the  West. 
They  had  behind  them  centuries  of  splendid  tradition,  a  great  devel- 
opment of  art  and  of  literature.  At  present  they  were  passing 
through  a  period  of  transition  from  the  autocratic  rule  of  an 
ancient  dynasty  to  the  development  of  advanced  democratic  institu- 
tions. There  was  no  occasion  for  surprise  that,  under  these  cir- 
cumstances, the  conditions  to  which  had  been  alluded  to  should  have 


11»  CHINA  AT  THE  CONFERENCE 

arisen.  It  might  rather  have  been  anticipated  that  the  disorders  and 
the  instability  would  have  been  more  pronounced.  But  among  all 
the  tumult  and  the  fluctuations  attending  the  development  of  de- 
mocracy in  China,  the  attachment  of  the  people  to  the  soil  and  their 
untiring  industry  had  remained  unchanged.  One  might  adapt  the 
words  of  a  well-known  quotation : 

They  hear  the  legions  thunder  past, 
Then  plunge  in  toil  again. 

Notwithstanding  the  present  conditions,  no  one  should  fear  for 
the  future  of  the  Chinese  people.  It  had  sometimes  been  thought 
that  they  would  be  absorbed  by  other  nations.  In  his  judgment, 
they  were  more  likely  to  absorb  than  to  be  absorbed.  The  mere 
passive  resistance  of  that  vast  nation  of  400,000,000  was  powerful  to 
protect  it.  Out  of  the  present  disorders  would  eventually  arise  a 
permanent  system  of  stable  government  and  China  would  take  her 
deserved  and  well-recognized  place  among  the  great  powers  of  the 
world.  This  could  not  be  accomplished  for  China  by  any  other 
nation  or  group  of  nations.  External  beneficent  influences  might 
aid,  but  in  the  end  the  Chinese  people  must  work  out  their  own 
political  salvation.  There  was  abundant  reason  to  believe  that  they 
could  and  would  accomplish  this.  In  the  meantime,  it  was  the 
duty  of  other  nations — and  that  duty  had  been  exemplified  in  the 
work  of  this  conference — to  lend  a  helping  hand  wherever  that 
might  be  possible  to  remove  hampering  restrictions  as  soon  as  prac- 
ticable and  to  give  every  assistance  and  encouragement  for  the 
political  regeneration  of  this  illustrious  people. 

Resolution  Adopted.  As  finally  embodied  in  the 
ninth  of  the  Resolutions  adopted  by  the  Conference, 
at  its  fifth  plenary  session,  this  Resolution  reads  as 
follows : 

Whereas  the  Powers  attending  this  Conference  have  been  deeply 
impressed  with  the  severe  drain  on  the  public  revenue  of  China 
through  the  maintenance  in  various  parts  of  the  country,  of  military 
forces,  excessive  in  their  number  and  controlled  by  the  military 
chiefs  of  the  provinces  without  coordination. 


ARMED  FORCES  IN  CHINA  113 

And  whereas  the  continued  maintenance  of  these  forces  appears 
to  be  mainly  responsible  for  China's  present  unsettled  political  con- 
ditions, 

And  whereas  it  is  felt  that  large  and  prompt  reductions  of  these 
forces  will  not  only  advance  the  cause  of  China's  political  unity 
and  economic  development  but  will  hasten  her  financial  rehabili- 
tation ; 

Therefore,  without  any  intention  to  interfere  in  the  internal 
problems  of  China,  but  animated  by  the  sincere  desire  to  see  China 
develop  and  maintain  for  herself  an  effective  and  stable  government 
alike  in  her  own  interest  and  in  the  general  interest  of  trade ; 

And  being  inspired  by  the  spirit  of  this  Conference  whose  aim  is 
to  reduce,  through  the  limitation  of  armament,  the  enormous  dis- 
bursements which  manifestly  constitute  the  greater  part  of  the 
encumbrance  upon  enterprise  and  national  prosperity ; 

It  is  resolved :  That  this  Conference  express  to  China  the  earnest 
hope  that  immediate  and  effective  steps  may  be  taken  by  the 
Chinese  Government  to  reduce  the  aforesaid  military  force  and 
expenditures. 


CHAPTER  IX. 

Extraterritoriality 


Chinese  Statement.  China's  wishes  with  regard  to 
the  modification  and  ultimate  abolition  of  the  extra- 
territorial rights  of  foreigners  within  her  borders 
were  presented  by  Dr.  Wang  to  the  Committee  at  its 
sixth  meeting,  held  November  25.^ 

Extraterritoriality  in  China,  said  Dr.  Wang,  dated  back  almost 
to  the  beginning  of  China's  treaty  relations  with  foreign  countries. 
It  was  clearly  laid  down  in  the  treaty  of  1844,  between  the  United 
States  and  China,  and  similar  provisions  had  since  been  inserted  in 
treaties  with  other  powers. 

These  extraterritorial  rights  were  granted  at  a  time  when  there 
were  only  five  treaty  ports — that  is,  places  where  foreigners  could 
trade  and  reside.  Now  there  are  fifty  such  places  and  an  equal 
number  of  places  open  to  foreign  trade  on  China's  initiative.  This 
meant  an  ever-increasing  number  of  persons  within  China's  territory 
over  whom  she  was  almost  powerless.  This  anomalous  condition 
had  become  a  serious  problem  with  which  local  administration  was 
confronted ;  and  if  the  impairment  of  the  territorial  and  administra- 
tive integrity  of  China  was  not  to  be  continued,  the  matter  de- 
manded immediate  solution. 

Dr.  Wang  said  that  he  would  point  out  some  of  the  serious  objec- 
tions to  the  extraterritorial  system : 

(a)  In  the  first  place,  it  is  in  derogation  of  China's  sovereign 
rights,  and  is  regarded  by  the  Chinese  people  as  a  national  humilia- 
tion. 

*What  follows  is  quoted  or  paraphrased  from  U.  S.  Senate  Document, 
No.  126,  67th  Congress,  2d  session,  pp.  475  ff. 

114 


EXTRATERRITORIALITY  115 

(b)  There  is  a  multiplicity  of  courts  in  one  and  the  same  locality, 
and  the  interrelation  of  such  courts  has  given  rise  to  a  legal  situa- 
tion perplexing  both  to  the  trained  lawyer  and  to  the  layman. 

(c)  Disadvantages  arise  from  the  uncertainty  of  the  law.  The 
general  rule  is,  that  the  law  to  be  applied  in  a  given  case  is  the  law 
of  the  defendant's  nationality,  and  so,  in  a  commercial  transaction 
between,  say,  X  and  Y  of  different  nationalities,  the  rights  and 
liabilities  of  the  parties  vary  according  as  to  whether  X  sued  Y  first, 
or  Y  sued  X  first. 

(d)  When  causes  of  action,  civil  or  criminal,  arise  in  which 
foreigners  are  defendants,  it  is  necessary  for  adjudication  that  they 
should  be  carried  to  the  nearest  consular  court,  which  may  be  many 
miles  away ;  and  so  it  often  happens  that  it  is  practically  impossible 
to  obtain  the  attendance  of  the  necessary  witnesses,  or  to  produce 
other  necessary  evidence. 

(e)  Finally,  it  is  a  further  disadvantage  to  the  Chinese  that 
foreigners  in  China,  under  cover  of  extraterritoriality,  claim  im- 
munity from  local  taxes  and  excises  which  the  Chinese  themselves 
are  required  to  pay.  Sir  Robert  Hart,  who  worked  and  lived  in 
China  for  many  years,  had  said  in  his  book,  "  These  from  the  Land 
of  Sinim  " :  "  The  extraterritoriality  stipulation  may  have  relieved 
the  native  official  of  some  troublesome  duties,  but  it  has  always 
been  felt  to  be  offensive  and  humiliating,  and  has  ever  a  disinte- 
grating effect,  leading  the  people,  on  the  one  hand,  to  despise  their 
own  Government  and  officials,  and,  on  the  other,  to  envy  and  dislike 
the  foreigner  withdrawn  from  native  control." 

Until  the  system  is  abolished  or  substantially  modified.  Dr.  Wang 
continued,  it  would  be  inexpedient  for  China  to  open  her  entire 
territory  to  foreign  trade  and  commerce.  The  evils  of  the  existing 
system  had  been  so  obvious  that  Great  Britain  in  1902,  Japan  and 
the  United  States  in  1903,  and  Sweden  in  1908  agreed,  subject  to 
certain  conditions,  to  relinquish  their  extraterritorial  rights. 
Twenty  years  had  elapsed  since  the  conclusion  of  these  treaties,  and 
while  it  is  a  matter  of  opinion  as  to  whether  or  not  the  state  of 
China's  laws  has  attained  the  standard  to  which  she  is  expected 
to  conform,  it  is  impossible  to  deny  that  she  has  made  great  prog- 
ress on  the  path  of  legal  reform.    A  few  facts  would  suffice  for  the 


116  CHINA  AT  THE  CONFERENCE 

present.  A  law  codification  mission  for  the  compilation  and  revision 
of  laws  has  been  sitting  since  1904.  Five  codes  have  been  prepared, 
some  of  which  have  already  been  put  into  force:  (a)  The  Civil 
Code,  still  in  course  of  revision;  (b)  the  Criminal  Code,  in  force 
since  1912;  (c)  the  Code  of  Civil  Procedure,  and  (d)  the  Code  of 
Criminal  Procedure,  both  of  which  have  just  been  promulgated ;  and 
(e)  the  Commercial  Code,  part  of  which  has  been  put  into  force. 

These  codes,  Dr.  Wang  said,  have  been  prepared  with  the  assis- 
tance of  foreign  experts,  and  are  based  on  the  principles  of  modern 
jurisprudence.  Among  the  numerous  supplementary  laws  especial 
mention  might  be  made  of  a  law  of  1918,  called  "  Rules  for  the  Ap- 
plication of  Foreign  Laws,"  which  deals  with  matters  relating  to 
private  international  law.  Under  these  rules,  foreign  law  is  given 
ample  application.  Then  there  is  a  new  system  of  law  courts  estab- 
lished in  1910.  The  judges  are  all  modern,  trained  lawyers,  and  no 
one  can  be  appointed  a  judge  unless  he  has  attained  the  requisite 
legal  training.  These  are  some  of  the  reforms  which  have  been 
carried  out  in  China. 

Dr.  Wang  declared  that  the  China  of  to-day  was  not  the  China  of 
20  years  ago,  when  Great  Britain  encouraged  her  to  reform  her 
judicial  system,  and,  a  fortiori,  she  is  not  the  China  of  80  years  ago, 
when  extraterritorial  rights  were  first  granted  to  the  treaty  powers. 
Dr.  Wang  said  he  had  made  these  observations,  not  for  the  purpose 
of  asking  for  an  immediate  and  complete  abolition  of  extraterritor- 
iality, but  for  the  purpose  of  inviting  the  powers  to  cooperate  with 
China  in  taking  initial  steps  toward  improving  and  eventually 
abolishing  the  existing  system,  which  is  admitted  on  all  hands  to  be 
unsatisfactory  both  to  foreigners  and  Chinese.  It  is  gratifying  to 
learn  of  the  sympathetic  attitude  of  the  powers  toward  this  ques- 
tion, as  expressed  by  the  various  delegations  at  a  previous  meeting 
of  this  committee. 

In  concluding.  Dr.  Wang  asked,  in  the  name  of  the  Chinese  dele- 
gation, that  the  powers  now  represented  to  this  conference  agree  tc 
relinquish  their  extraterritorial  rights  in  China  at  the  end  of  a 
definite  period.  In  the  meanwhile,  he  proposed  that  the  above- 
mentioned  powers  should,  at  a  date  to  be  agreed  upon,  designate 
representatives  to  enter  into  negotiations  with  China  for  the  adop- 


EXTRATERRITORIALITY  117 

tion  of  a  plan  for  a  progressive  modification  and  ultimate  abolition 
of  the  system  of  extraterritoriality  in  China,  the  carrying  out  of 
which  plan  was  to  be  distributed  over  the  above-mentioned  period. 

The  chairman,  Secretary  Hughes,  said  that  certain  treaties  had 
been  referred  to  by  Dr.  Wang.  In  order  to  bring  these  concretely 
before  the  delegates,  he  would  like  to  read  from  the  Treaty  of  1903 
between  the  United  States  and  China : 

"Art.  XV. — Reform  of  judicial  system — Extraterritoriality  to 
terminate. — The  Government  of  China  having  expressed  a  strong 
desire  to  reform  its  judicial  system  and  to  bring  it  into  accord  with 
that  of  western  nations,  the  United  States  agrees  to  relinquish  extra- 
territorial rights  when  satisfied  that  the  state  of  the  Chinese  laws, 
the  arrangements  for  their  administration,  and  other  considerations 
warrant  it  in  so  doing." 

He  understood  that  substantially  the  same  statement  was  found  in 
the  other  treaties  with  Great  Britain  in  1902  and  with  Japan  in 
1903.  So  far  as  the  Government  of  the  United  States  is  concerned, 
it  had  already  formulated  an  expression  of  its  desire  to  give  all 
possible  assistance  to  China's  project  for  reform,  and  he  had  no 
doubt  that  the  other  powers  were  equally  in  favor  of  furthering  a 
more  complete  juridical  integrity  for  China.  The  question,  how- 
ever, is  one  of  treaty  right — of  fact,  rather  than  of  principle,  for  the 
principle  had  already  been  defined  by  the  three  Governments  re- 
ferred to  by  Dr.  Wang.  What  is  the  state  of  the  administration  of 
justice  in  China?  What  are  the  laws?  And  how  were  they  ad- 
ministered? The  chairman  said  that  extraterritoriality  was  de- 
signed for  the  protection  of  certain  juridical  rights,  and  though  he 
agreed  that  the  extraterritorial  machinery  left  much  to  be  desired, 
he  felt  that  in  determining  what  could  be  done  to  assist  China  in 
this  matter,  a  very  definite  notion  must  be  had  of  the  administration 
of  justice  in  that  country  before  existing  treaty  rights  should  be 
abolished.  Whatever  steps  were  taken,  they  should  be  preceded  by 
an  inquiry  into  existing  conditions,  and  this  would  be,  as  a  matter 
of  fact,  a  very  difficult  problem  to  deal  with.  The  chairman  repeated 
that  some  nations  had  already  formulated  an  expression  of  principle ; 
it  is  now  a  question  of  finding  the  best  way  of  aiding  China  when 
she  is  ready. 


118  CHINA  AT  THE  CONTERENCE 

Dr.  Wang  said  that  China  was  ready  to  give  every  facility  to  the 
powers  for  ascertaining  what  her  laws  are  and  how  they  are 
administered. 

For  the  more  particular  consideration  of  the  pro- 
posals thus  presented  by  China,  a  sub-committee  was 
appointed  composed  of  one  member  nominated  by 
each  Delegation.' 

Resolution  Adopted.  At  the  ninth  meeting  of  the 
Committee  of  the  Whole  the  sub-committee  on 
Extraterritoriality  submitted  the  following  draft 
resolutions  which  were  unanimously  adopted  by  the 
Committee  without  further  discussion,  and  later 
approved,  also  without  further  discussion,  by  the  Con- 
ference at  its  fourth  plenary  session,  held  December 
10,1921: 

The  representatives  of  the  Powers  hereinafter  named,  participat- 
ing in  the  discussion  of  Pacific  and  Far  Eastern  questions  in  the 
Conference  on  the  Limitation  of  Armament — to  wit,  the  United 
States  of  America,  Belgium,  the  British  Empire,  France,  Italy, 
Japan,  the  Netherlands  and  Portugal — 

Having  taken  note  of  the  fact  that  in  the  Treaty  between  Great 
Britain  and  China  dated  September  5,  1903,  in  the  Treaty  between 
the  United  States  of  America  and  China  dated  October  8,  1903,  and 
in  the  Treaty  between  Japan  and  China  dated  October  8,  1903, 
these  several  Powers  have  agreed  to  give  every  assistance  towards 
the  attainment  by  the  Chinese  Government  of  its  expressed  desire 
to  reform  its  judicial  system  and  to  bring  it  into  accord  with  that 
of  Western  nations,  and  have  declared  that  they  are  also  "  prepared 

•The  Sub-Committee  on  Extraterritoriality  was  composed  of  Senator 
Lodge,  for  the  United  States;  Senator  Pearce,  for  the  British  Empire; 
M.  Sarraut,  for  France;  Senator  Ricci,  for  Italy;  Mr.  Hanihara,  for  Japan; 
Japan;  Chevalier  de  Wouters,  for  Belgium;  Dr.  Wang  Chang-hui,  for 
China;  Jonkheer  van  Kamebeek,  for  the  Netheriands;  and  Captain 
Vasconcellos,  for  Portugal. 


EXTRATERRITORIALITY  119 

to  relinquish  extraterritorial  rights  when  satisfied  that  the  state  of 
the  Chinese  laws,  the  arrangements  for  their  administration,  and 
other  considerations  warrant "  them  in  so  doing ; 

Being  sympathetically  disposed  towards  furthering  in  this  regard 
the  aspiration  to  which  the  Chinese  Delegation  gave  expression  on 
November  16,  1921,  to  the  effect  that  "  immediately,  or  as  soon  as 
circumstances  will  permit,  existing  limitations  upon  China's  politi- 
cal, jurisdictional  and  administrative  freedom  of  action  are  to  be 
removed  '* ; 

Considering  that  any  determination  in  regard  to  such  action  as 
might  be  appropriate  to  this  end  must  depend  upon  the  ascertain- 
ment and  appreciation  of  complicated  states  of  fact  in  regard  to  the 
laws  and  the  judicial  system  and  the  methods  of  judicial  administra- 
tion of  China,  which  this  Conference  is  not  in  a  position  to 
determine ; 

Have  resolved — 

That  the  Governments  of  the  Powers  above  named  shall  establish 
a  Commission  (to  which  each  of  such  Governments  shall  appoint  one 
member)  to  inquire  into  the  present  practice  of  extraterritorial 
jurisdiction  in  China,  and  into  the  laws  and  the  judicial  system  and 
the  methods  of  judicial  administration  of  China,  with  a  view  to 
reporting  to  the  Governments  of  the  several  Powers  above  named 
their  findings  of  fact  in  regard  to  these  matters,  and  their  recom- 
mendations as  to  such  means  as  they  may  find  suitable  to  improve 
the  existing  conditions  of  the  administration  of  justice  in  China, 
and  to  assist  and  further  the  efforts  of  the  Chinese  Government  to 
effect  such  legislation  and  judicial  reforms  as  would  warrant  the 
several  Powers  in  relinquishing,  either  progressively  or  otherwise, 
their  respective  rights  of  extraterritoriality; 

That  the  Commission  herein  contemplated  shall  be  constituted 
within  three  months  after  the  adjournment  of  the  Conference  in 
accordance  with  detailed  arrangements  to  be  hereafter  agreed  upon 
by  the  Governments  of  the  Powers  above  named,  and  shall  be  in- 
structed to  submit  its  report  and  recommendations  within  one  year 
after  the  first  meeting  of  the  commission ; 

That  each  of  the  Powers  above  named  shall  be  deemed  free  to 
accept  or  to  reject  all  or  any  portion  of  the  recommendations  of  the 


120  CHINA  AT  THE  CONFERENCE 

Commission  herein  contemplated,  but  that  in  no  case  shall  any  of 
the  said  Powers  make  its  acceptance  of  all  or  any  portion  of  such 
recommendations  either  directly  or  indirectly  dependent  on  the 
granting  by  China  of  any  special  concession,  favor,  benefit,  or  im- 
munity, whether  political  or  economic. 

And  the  further  resolution : 

That  the  non-signatory  Powers  having  by  treaty  extraterritorial 
rights  in  China  may  accede  to  the  resolution  affecting  extrater- 
ritoriality and  the  administration  of  justice  in  China  by  depositing 
within  three  months  after  the  adjournment  of  the  Conference  a 
written  notice  of  accession  with  the  Government  of  the  United 
States  for  communication  by  it  to  each  of  the  signatory  Powers. 

And  the  further  resolution : 

That  China,  having  taken  note  of  the  resolutions  affecting  the 
establishment  of  a  Commission  to  investigate  and  report  upon 
extraterritoriality  and  the  administration  of  justice  in  China,  ex- 
presses its  satisfaction  with  the  sympathetic  disposition  of  the 
Powers  hereinbefore  named  in  regard  to  the  aspiration  of  the 
Chinese  Government  to  secure  the  abolition  of  extraterritoriality  in 
China,  and  declares  its  intention  to  appoint  a  representative  who 
shall  have  the  right  to  sit  as  a  member  of  the  said  Commission,  it 
being  understood  that  China  shall  be  deemed  free  to  accept  or  to 
reject  any  or  all  of  the  recommendations  of  the  Commission. 
Furthermore,  China  is  prepared  to  cooperate  in  the  work  of  this 
Commission  and  to  afford  to  it  every  possible  facility  for  the  suc- 
cessful accomplishment  of  its  tasks. 


CHAPTER  X 

Foreign  Post  Offices  in  China 


The  matter  of  securing  the  removal  from  China  of 
the  post  offices  which  foreign  nations,  without  treaty 
right,  had  established  upon  Chinese  soil  was  brought 
before  the  Committee  of  the  Whole  at  its  sixth  meet- 
ing held  November  25. 

Chinese  Statement.  Mr.  Sze,  in  behalf  of  the 
Chinese  Delegation,  made  the  following  statement : 

As  Mr.  Koo  said  the  other  day  in  his  remarks  before  the  com- 
mittee, China  has  suffered  and  is  now  suffering  not  only  from  limita- 
tions upon  her  territorial  and  administrative  integrity,  to  which  she 
has  been  led  to  consent,  but  also  from  open  violations  of  her  rights 
as  a  territorial  sovereign  for  which  not  even  a  vestige  of  contractual 
right  can  be  claimed. 

Among  these  violations  are  the  stationing  of  foreign  troops  and 
railway  guards  at  various  points,  the  installation  of  wire  and  wire- 
less telegraph  communications,  the  maintenance  of  foreign  post 
offices,  and  so-called  "  police  boxes."  I  shall  first  speak  of  the 
foreign  postal  services  maintained  upon  Chinese  soil. 

China  requests  that  the  powers  assembled  in  the  conference  agree 
at  once  to  abolish  all  postal  services  now  maintained  by  them  in 
China.    She  bases  her  request  upon  the  following  propositions : 

1.  China  has  organized  and  is  now  conducting  a  postal  system 
covering  the  entire  country,  and  maintaining  relations  with  all 
foreign  countries  adequate  to  meet  all  requirements.  The  trans- 
mission of  postal  matter  is  a  government  monopoly,  the  first  para- 
graph of  the  postal  statutes  of  October  12,  1921,  reading:  "The 
postal  business  is  exclusively  conducted  by  the  Government." 

121 


122  CHINA  AT  THE  CONFERENCE 

2.  The  existence  of  foreign  post  offices  interferes  with  and  makes 
more  difficult  the  development  of  this  system,  and  deprives  it  of  a 
revenue  which  legally  and  equitably  should  belong  to  it. 

3.  The  maintenance  by  foreign  Governments  of  post  offices  in 
China  is  in  direct  violation  of  the  latter^s  territorial  and  adminis- 
trative integrity,  and  rests  upon  no  treaty  or  other  legal  rights. 

Early  in  the  sixties  of  the  last  century  foreign  post  offices  began 
to  open  branches  and  agencies  in  the  particular  treaty  ports  of 
China,  The  opening  of  these  offices  was  not  based  on  any  treaty  pro- 
vision or  concession.  Their  existence  and  gradual  increase  was 
merely  tolerated  by  the  Chinese  Government. 

About  the  same  time  a  regular  service  for  the  carriage  of  mails 
was  established  on  foreign  lines  in  connection  with  the  customs, 
operating  chiefly  between  the  numerous  ports  on  the  coast  of  China 
and  those  far  up  the  Yangtze  River.  This  service  continued  to  work 
and  to  improve  its  machinery  year  by  year.  By  imperial  decree  of 
March  20,  1896,  this  system  was  developed  into  a  distinct  Chinese 
postal  system  and  placed  under  the  general  direction  of  the  inspector 
general  of  customs.  Finally,  by  imperial  decree  of  May  28,  1911, 
the  system  was  taken  from  under  the  administration  of  the  inspector 
general  of  customs  and  developed  into  an  independent  system  operat- 
ing directly  under  the  minister  of  posts  and  communications.  Since 
that  date  the  system  has  operated  wholly  as  one  of  the  administrative 
services  of  the  Chinese  Government. 

On  March  1,  1914,  China  gave  her  adherence  to  the  Universal 
Postal  Convention,  and  since  September  1  of  that  year  she  has  con- 
tinued as  a  member  in  good  standing  of  the  Universal  Postal  Union. 

As  the  Universal  Postal  Union  does  not  recognize  the  right  of 
any  country  to  maintain  post  offices  in  another  country  which  is  a 
member  of  the  postal  union,  the  Chinese  delegation  brought  up  the 
question  of  alien  establishments  in  China  at  the  Universal  Postal 
Congress  opened  at  Madrid,  on  October  1,  1920.  The  question  of 
their  withdrawal  was  regarded  as  within  the  purview  of  their  respec- 
tive foreign  offices  and  no  definite  decision  was  reached.  A  measure 
was  passed,  however,  to  the  effect  that  only  such  foreign  postal 
agencies  could  be  considered  as  within  the  union  as  were  established 
in  a  foreign  country  not  itself  within  the  Universal  Postal  Union,  of 
which  China  has  been  a  member  since  September  1,  1914. 


FOREIGN  POST  OFFICES  128 

The  Chinese  post  ofSce  maintains  the  cheapest  general  service  in 
the  world,  and  the  following  rates  are  in  force : 

United 
Chinese  States 

currency  currency 

Letters   (local)    $0.01  $0.00i 

Letters    (domestic)    .03  .OH 

Post  card  (local)    .01  .OOi 

Post  card  (domestic)    .OU  -OOJ 

Newspapers  (local)  per  1(X)  grams .OOi  .OOi 

Newspapers  (domestic)  per  50  grams .OOi  -OOi 

Printed  matter  100  grams  rate  graduated  to    .01  .OOi 

Printed  matter  1^00  grams  for 15  .07i 

Unaddressed    circxilars    .001  .0005 

Registration  fee    .05  .02i 

Express  fee  (special  delivery) 10  .05 

In  spite  of  these  very  -cheap  rates  and  the  very  high  transporta- 
tion costs  in  maintaining  long  courier  lines  where  no  modem  facili- 
ties are  available,  the  surplus  of  receipts  over  expenditures  has  been 
steadily  increasing.  All  profits  are  being  put  into  improvements 
in  the  service  to  the  smaller  villages  inland.  Its  income  in  1920  was 
$12,679,121.98  and  its  expenditures  $10,467,053.07,  thus  leaving  a 
surplus  for  the  year's  operation  of  $2,212,068.91. 

Senders  of  registered  articles,  parcels,  insured  letters,  and  express 
articles  are  entitled  to  claim  indemnity  in  case  of  loss  by  the  post 
office.  Although  in  1920  over  37,000,000  such  articles  were  posted, 
less  than  400  claims  for  indemnity  were  made,  the  percentage  being 
about  1  in  90,000. 

There  has  been  a  decrease  of  30  per  cent  in  the  number  of  insured 
letters  posted  in  the  past  four  years,  though  other  mail  matter  has 
increased  by  50  per  cent  in  the  same  time.  This  is  considered  as 
indicating  a  growing  public  confidence  in  the  other  non-insured 
services. 

The  Chinese  post  office  has  over  3000  interpreter  employees,  and 
every  office  serving  places  of  foreign  residence  in  China  is  amply 
supplied  from  this  large  number  of  interpreters  to  cope  with  all 
foreign  correspondence. 

The  efficiency  of  the  Chinese  postal  service  is  further  guaranteed 
by  strictly  civil  service  methods  in  appointments  of  staff.     Em- 


124  CHINA  AT  THE  CONFERENCE 

ployees  enter  only  after  a  fair  examination,  both  mental  and 
physical.  Postmasters,  even  in  the  larger  cities,  are  selected  from 
the  most  efficient  of  the  employees ;  never  from  outside  the  service. 
The  penalty  for  invoking  political  aid  is  dismissal,  and  in  practice 
is  never  done. 

The  post  office  functions  under  the  same  central  administration 
over  the  entire  country.  In  time  of  local  disturbance  and  revolution 
the  revolutionists  have  recognized  the  post  office  as  a  necessity  to  the 
welfare  of  the  community  and  have  always  permitted  it  to  continue 
its  functions  without  change  of  staff  or  control. 

Notwithstanding  the  disturbed  condition  of  affairs  in  China  dur- 
ing recent  years,  the  system  has  been  steadily  developed  since  it 
was  placed  wholly  under  the  direction  and  control  of  Chinese  au- 
thorities. Mail  matter  posted  has  increased  approximately  300  per 
cent  since  1911  (from  126,539,228  to  400,886,935  in  1920) .  Parcels 
posted  have  increased  from  954,740  in  1911  to  4,216,200  in  1920, 
the  increase  being  over  300  per  cent. 

There  is  now  scarcely  a  Chinese  village  which  is  not  served  either 
by  a  post  office,  postal  agency,  or  minor  postal  establishment.  Major 
establishments  (offices  and  agencies)  have  increased  from  9103  in 
1917  to  10,469  in  1920.  Minor  establishments  (town  box  offices 
and  rural  stations)  have  increased  from  4890  in  1917  to  20,806  in 
1920.  This  makes  a  total  of  31,275  places  now  provided  with  postal 
facilities,  more  than  double  the  number  of  places  served  four  years 
ago. 

During  and  immediately  following  the  war  the  Chinese  post  office 
transmitted  through  its  money-order  service  over  $10,000,000  for 
the  British  and  French  Governments,  which  were,  making  payments 
to  the  families  of  over  100,000  Chinese  laborers  employed  for  work 
in  connection  with  the  war  in  France  and  Belgium.  The  Chinese 
post  office  was  made  use  of  by  the  Government  bureaus  concerned  in 
tracing  and  locating  relatives  of  deceased  laborers  and  in  determin- 
ing the  identity  and  other  particulars  of  claimants.  In  this  work 
the  Chinese  post  office  used  its  large  force  of  very  efficient  inspectors, 
and  made  no  charge  for  investigations  and  reports. 

An  international  money-order  department  is  now  functioning, 
conventions  for  the  exchange  of  money  orders  being  in  successful 


FOREIGN  POST  OFFICES  125 

operation  between  China  and  Great  Britain,  the  Dutch  East  Indies, 
and  Hongkong.  It  is  hoped  that  it  may  soon  be  extended  to  other 
countries. 

That  this  system  is  giving  efficient  and  satisfactory  service  has 
been  abundantly  attested  to  by  foreign  observers.  To  quote  from 
the  Commercial  Hand-Book  of  China,  published  by  the  United 
States  Department  of  Commerce  in  1920  (vol.  2,  p.  106) : 

"  The  Chinese  postal  service  has  extended  its  facilities  to  every 
district  in  the  country,  including  in  many  of  the  outlying  districts 
extensive  courier  lines.  In  spite  of  unsafe  conditions  that  have 
prevailed  in  certain  sections  of  the  country  during  the  past  few 
years,  and  notwithstanding  the  great  difficulty  of  transportation 
in  other  sections,  the  Chinese  postal  service  has  been  remarkably 
efficient,  and  one  hears  but  little  criticism  in  connection  with  its 
organization  and  general  work.  It  reports  that  very  few  complaints 
concerning  loss  of  mail  or  stolen  mail  are  made,  and,  on  the  whole, 
it  is  rendering  a  very  satisfactory  postal  service." 

Mr.  Willoughby,  in  his  careful  study,  "  Foreign  Rights  and 
Interests  in  China,"  says,  in  speaking  of  this  system : 

"At  the  present  time  (1920)  the  postal  service  in  China  is  one 
for  which  the  Government  deserves  great  credit.  Generally  speak- 
ing, the  service  is  efficiently  operated  and  with  reasonable  financial 
success,  notwithstanding  the  fact  that  China  has  been  obliged  to 
acquiesce  in  the  operation  within  her  borders  of  some  60  or  more 
foreign  post  offices." 

Notwithstanding  the  fact  that  China  now  has  an  efficient  postal 
system,  certain  foreign  Governments  continue  to  maintain  post 
offices  in  China.  At  the  present  time  Great  Britain,  France,  Amer- 
ica, and  Japan  are  maintaining  and  operating  offices  of  this  kind  at 
a  large  number  of  places.  The  alien  postal  establishments  in  China 
as  they  stand  at  present  are  as  follows :  Great  Britain,  12 ;  France, 
13;  Japan,  124;  United  States,  1. 

The  Japanese  establishments  are  classed  as  follows:  First-class 
offices,  7 ;  second-class  offices,  23 ;  third-class  offices,  4 ;  unclassified 
offices,  10 ;  sub-offices,  3 ;  box  offices,  1 ;  agencies,  33 ;  letter  boxes,  33 ; 
field  post  offices,  10. 

Those  post  offices  have  their  own  postage  stamps,  and  operate  in 
every  respect  in  direct  competition  with  the  Chinese  System.    It  is 


126  CHINA  AT  THE  CONFERENCE 

to  be  noted,  moreover,  that  these  foreign  oflBces  are  located  at  the 
chief  centers  of  population,  industry,  and  commerce.  They  are  thus 
in  a  position  where  they  can,  so  to  speak,  skim  the  cream  of  the 
postal  business,  since  they  are  under  no  obligation  to  maintain  offices 
at  unimportant  points,  and,  in  fact,  do  not  do  so. 

Parcels  and  mail  matter  entering  China  from  abroad  should  pass 
a  customs  examination.  With  the  exception  of  parcels  from  Shang- 
hai and  one  or  two  other  ports,  however,  it  is  a  notorious  fact  that 
but  few  parcels  or  other  articles  transmitted  by  foreign  post  offices 
are  ever  examined.  Cooperation  between  foreign  postal  establish- 
ments and  the  Chinese  customs  is  extremely  difficult  and  in  practice 
has  proven  almost  impossible.  Thus  the  customs  revenues  are  very 
materially  affected,  and  foreign  post  offices  become  an  efficient  aid 
to  smugglers  of  contraband,  particularly  of  morphia,  cocaine,  and 
opium.  On  the  other  hand,  parcels  handled  by  the  Chinese  post 
offices  are  subject  to  rigid  customs  examination,  duties  being  col- 
lected, in  most  cases,  by  the  post  office  on  behalf  of  the  customs 
administration.  The  Chinese  post  office  is  thus  working  under  a 
handicap  in  competition  with  whose  of  other  nations  within  its  own 
territories. 

It  is  submitted  that  if  the  necessity  ever  existed  for  the  main- 
tenance of  foreign  post  offices  in  China,  this  necessity  has  now  passed 
away.  As  early  as  April  20,  1902,  the  American  minister  at  Peking 
reported  to  his  Government  (United  States  Foreign  Eels.,  1902, 
p.  225)  : 

"  I  have  given  such  investigation  as  I  have  been  able,  and  report 
that,  in  my  judgment,  foreign  post  offices  in  China,  except  at  Shang- 
hai, are  not  a  necessity,  because  the  Chinese  postal  service,  under 
the  imperial  maritime  customs,  is  everywhere  giving  satisfactory 
service,  and  is  rapidly  and  effectively  increasing  and  extending  into 
the  interior." 

More  recently  the  Commercial  Hand-Book  of  China,  from  which 
we  have  already  quoted,  says : 

"  The  developments  of  the  Chinese  postal  service  during  the  past 
decade  have  been  so  extensive  and  so  favorable  that  there  is  in 
reality  no  longer  any  need  for  a  continuance  of  the  foreign  post 
offices  operated  in  that  country." 


FOREIGN  POST  OFFICES  127 

It  is  to  be  noted,  moreover,  that  the  maintenance  of  these  foreign 
oflEices  rests  upon  no  treaty  or  other  legal  right.  Regarding  this 
point,  the  American  minister,  in  his  communication  to  his  country, 
of  April  20, 1903,  to  which  reference  has  already  been  made,  said : 

"The  foreign  post  offices  are  being  established  principally  for 
political  reasons,  either  in  view  of  their  future  designs  upon  the 
Empire,  to  strengthen  their  own  footing,  or  because  jealous  of  that 
of  others.  They  are  not  established  with  the  consent  of  China,  but 
in  spite  of  her.  They  will  not  be  profitable.  Their  establishment 
materially  interferes  with  and  embarrasses  the  development  of  the 
Chinese  postal  service,  is  an  interference  with  China's  sovereignty, 
is  inconsistent  with  our  well-known  policy  toward  the  Empire,  and 
I  can  not  find  any  good  reason  for  their  establishment  by  the  United 
States." 

That  China  has  never  recognized  any  such  right  is  evidenced  by 
a  communication  that  her  postmaster  general  addressed  to  the  postal 
union  on  March  18,  1915.  After  referring  to  pertinent  provisions 
of  the  Universal  Postal  Convention  and  of  the  Reglement  d'Execu- 
tion,  the  communication  continued : 

"  Relying  upon  the  principles  inscribed  in  the  Universal  Postal 
Convention  and  in  agreement  on  this  point  with  the  jurists  in  inter- 
national law  of  all  countries,  China  considers  that  by  virtue  of  its 
entry  into  the  union  the  offices  maintained  upon  its  territory  by 
other  countries  of  the  union  have  ceased  to  have  a  legal  existence. 
Although  in  consequence  of  the  difficulties  mentioned  above  and 
those  that  have  their  origin  in  the  present  events  of  the  war,  China 
has  found  herself  obligated,  in  order  not  to  impede  the  transmission 
of  its  mails,  to  continue  temporarily  for  the  purpose  of  its  relations 
with  other  countries  to  have  recourse  to  the  intermediation  of  cer- 
tain of  the  foreign  post  offices  established  upon  its  territory,  or  to 
accept  this  intermediation,  it  must  declare  that  this  course  of  action 
implies  no  recognition  on  its  part  of  the  legality  of  these  offices,  and, 
furthermore,  that  no  status,  in  that  respect,  can  be  created  by  the 
written  communications  that  have  been  or  that  may  hereafter  be 
exchanged  in  regard  to  them,  either  with  those  ofiices  or  with  the 
administration  to  which  they  belong.  China  protests  against  the 
maintenance,  by  the  majority  of  the  foreign  poet  oflSces  operating 


128  CHINA  AT  THE  CONFERENCE 

upon  its  territory,  of  tariffs  lower  than  those  fixed  by  article  5,  of 
the  Rome  convention,  for  the  payment  of  postage  upon  mails  ex- 
changed by  those  offices,  either  between  themselves  or  with  the 
countries  to  which  they  respectively  belong. 

"  China,  having  adhered  as  from  September  1  last  to  the  Rome 
convention  concerning  the  exchange  of  parcels  post,  must  declare 
that  what  has  been  said  above,  in  regard  to  the  temporary  continua- 
tion, necessitated  by  circumstances,  of  the  intermediation  of  foreign 
post  offices  established  upon  its  territory,  applied  likewise  to  the 
parcels  post  service." 

The  following  letter  of  the  American  representative  at  the 
Madrid  conference  of  the  Universal  Postal  Union,  to  the  Director 
General  of  the  Chinese  Post  Office,  speaks  for  itself : 

Madeid,  27  November,  1920. 
"  Mr.  Liou  Fou  Tcheng, 

"  Director  General  of  the  Chinese  Posts,  Madrid. 

"  Deah  Sie. — With  regard  to  the  conversation  which  we  last  had 
concerning  the  postal  service  of  China,  permit  me  again  to  assure 
you  of  the  high  appreciation  of  the  American  postal  administration 
of  the  efficiency  and  excellence  of  the  postal  service  of  the  Chinese 
Government. 

"I  am  authorized  by  my  Government  to  express  to  you  the 
sympathy  of  the  United  States  with  the  desire  of  the  Chinese  Gov- 
ernment that  all  of  the  foreign  post  offices  should  be  withdrawn 
from  its  territory  and  the  United  States  will  be  willing  to  participate 
in  a  unanimous  movement  of  all  the  foreign  Powers  for  the  cessation 
of  postal  operations  carried  on  by  the  other  nations  in  the  territory 
of  China. 

"  The  Postal  Administration  of  your  country  has  the  right  to  the 
approbation  and  respect  of  the  entire  world  with  regard  to  the 
efficiency  of  your  postal  operations. 

"  Please  accept,  sir,  the  assurance  of  my  high  consideration. 
"  (Signed)  Otto  Pragee, 

"  Sub-Assistant  Postmaster  Oeneral." 

In  conclusion,  China  wishes  to  point  out  that,  wholly  apart  from 
the  financial  loss  suffered  by  her  as  a  result  of  the  existence  of 
foreign  post  offices  on  her  soil,  and  the  obstacles  placed  thereby  in 


FOREIGN  POST  OFFICES  129 

the  way  of  the  development  of  her  own  postal  system,  the  main- 
tenance of  such  offices  represents  a  most  direct  violation  of  her 
territorial  and  administrative  integrity.  It  is  one,  moreover,  that 
is  peculiarly  objectionable,  since  it  is  a  constant,  visible  reminder  to 
the  Chinese  people  that  they  are  not  accorded  the  consideration 
given  to  other  peoples.  This  necessarily  has  a  tendency  to  lower 
the  prestige  of  the  Chinese  Government  in  the  eyes  of  her  people, 
and  to  make  more  difficult  the  already  difficult  problem  of  main- 
taining a  government  that  will  command  the  respect  and  ready 
obedience  of  her  population.  From  whatever  standpoint  it  is  viewed, 
the  continuance  of  these  foreign  post  offices  upon  Chinese  soil  should, 
therefore,  be  condemned. 

Discussion.  At  the  seventh  meeting  of  the  Com- 
mittee, held  November  26,  a  discussion  was  had  of 
Mr.  Sze's  statement. 

The  Chairman,  Secretary  Hughes,  said  that  the 
United  States  was  ready  to  give  up  its  only  post  office 
in  China,  that  at  Shanghai,  if  the  other  governments 
maintaining  postal  establishments  in  China  were 
willing  to  take  similar  action.  The  information  pos- 
sessed by  the  American  Delegation,  he  said,  was  in 
accordance  with  the  Chinese  claims  as  to  the  efficiency 
of  China's  postal  sei-vice. 

Mr.  Sze,  supplementing  his  previous  statement, 
said  that  China's  postal  service  had  not  been  dis- 
turbed by  the  Revolution  of  1911,  but  that  upon  the 
contrary,  since  that  time,  its  efficiency  had  steadily 
increased. 

Mr.  Balfour  suggested  that  the  Chinese  system  had 
probably  owed  a  good  deal  of  its  efficiency  to  the  aid 
of  the  Frenchman  who,  as  co-director  general  of  the 
posts,  had  been  at  its  head,  and  asked  if  it  was  the 
intention  of  China  to  continue  to  make  use  of  his 
services. 

10 


130  CHINA  AT  THE  CONFEEENCE 

M.  Viviani  said  that  France  was  willing  to  accede 
to  China's  desires  if  the  other  Powers  would  do  the 
same,  if  the  present  co-director  were  retained,  and  if 
the  efficiency  of  the  service  were  maintained. 

Mr.  Sze  said  that  China  had  no  intention  of  making 
any  immediate  radical  changes  in  her  postal  adminis- 
tration. 

Mr.  Harihara  said  that  Japan  had  no  desire  to  per- 
petuate the  existing  system  of  foreign  post  offices,  but 
that  actual  conditions  and  necessities  should  be  taken 
into  consideration.  **  Information  received  by  the 
Japanese  Delegation,''  he  said,  *'  had  convinced  it 
that  safety  of  communications  in  China  was  not 
assured,  and  on  this  ground  there  was  some  reason 
why  the  foreign  post  offices  should  not  be  withdrawn ; 
as  a  practical  measure  it  would  be  difficult  to  with- 
draw at  once.  The  plain  fact  was  that  there  were 
more  Japanese  in  China,  either  as  residents  or  trav- 
ellers, than  there  were  nationals  of  any  other  Power — 
possibly  thirty  or  fifty  times  as  many — and  their 
activities  were  more  varied.  Japan  had  no  objection 
to  the  withdrawal  of  the  foreign  post  offices  under 
the  guarantees  suggested  by  Mr.  Balfour  and  M. 
Viviani  (which  the  Japanese  Delegation  considered 
very  necessary),  but  Japan  asked  that  she  be  given 
time  in  order  that  it  might  be  seen  that  no  necessity  or 
justification  existed  for  the  continued  maintenance 
of  the  system;  as  it  became  evident  that  conditions 
warranted,  Japan  would  be  prepared  to  withdraw  her 
post  offices." 

Mr.  Sze  asked  of  Mr.  Hanihara  whether  he  had  in 
mind  any  period  of  time  within  which  his  country 


FOREIGN  POST  OFFICES  131 

would  withdraw  its  post  offices,  and  if  he  had  any  sug- 
gestions to  make  as  to  the  manner  in  which  the  Chi- 
nese postal  service  might  be  improved.  As  to  his 
statement  regarding  the  number  of  Japanese  in 
China,  Mr.  Sze  said  that  he  knew  of  no  principle  of 
international  law  that  recognized  such  a  fact  as  a 
sufficient  justification  for  the  maintenance  by  one 
coimtry  of  postal  agencies  upon  the  soil  of  another 
country  without  that  country's  consent.  He  called 
attention  to  the  fact  that  there  were  Chinese  post- 
offices  at  all  the  places  where  foreign  offices  were 
maintained. 

To  this  Mr.  Hanihara  replied  that  he  had  not 
intended  to  state  a  principle  but  only  a  fact.  He 
suggested  that  the  whole  matter  be  referred  for  dis- 
cussion to  the  Ministers  of  the  various  interested 
Powers  at  Peking  who  would  be  in  a  position  to  know 
when  a  withdrawal  of  the  foreign  post  offices  should 
be  effected.  This  suggestion  was  not  accepted  by  the 
Committee,  and  a  sub-committee  was  appointed  to 
draft  resolution  for  withdrawal  in  accordance  with 
the  conditions  which  had  been  spoken  of.^ 

Resolutions.  At  the  fifteenth  meeting  of  the  Com- 
mittee of  the  Whole,  held  December  12,  this  sub- 
committee reported  the  following  resolution  as  having 
been  agreed  upon: 

A.  Recognizing  the  justice  of  the  desire  expressed  by  the  Chinese 
Qovemment  to  secure  the  abolition  of  foreign  postal  agencies  in 

'The  membership  of  thia  sub-committee  was  as  follows:  Senator  Lodge 
(Chairman),  for  the  United  Statea;  Sir  Auckland  Geddes,  for  the  British 
Empire;  M.  Viviani,  for  France;  Mr.  Sie,  for  China;  and  Mr.  Hanihara, 
for  Japan. 


132  CHINA  AT  THE  CONFERENCE 

China,  save  or  except  in  leased  territories  or  as  otherwise  specifically 
provided  by  treaty,  it  is  resolved : 

(1)  The  four  powers  having  such  postal  agencies  agree  to  their 
abandonment  subject  to  the  following  conditions : 

(a)  That  an  efficient  Chinese  postal  service  is  maintained; 

(b)  That  an  assurance  is  given  by  the  Chinese  Government  that 
they  contemplate  no  change  in  the  present  postal  administration  so 
far  as  the  status  of  the  foreign  co-director  general  is  concerned, 

(2)  To  enable  China  and  the  powers  concerned  to  make  the  neces- 
sary dispositions,  this  arrangement  shall  come  into  force  and  effect 
not  later  than 

B.  Pending  the  complete  withdrawal  of  foreign  postal  agencies, 
the  four  powers  concerned  severally  undertake  to  afford  full  facilities 
to  the  Chinese  customs  authorities  to  examine  in  those  agencies  all 
postal  matter  (excepting  ordinary  letters,  whether  registered  or  not, 
which  upon  external  examination  appear  plainly  to  contain  only 
written  matter)  passing  through  them,  with  a  view  to  ascertaining 
whether  they  contain  articles  which  are  dutiable  or  contraband  or 
which  otherwise  contravene  the  customs  regulations  or  laws  of 
China. 

Japanese  Statement.  Senator  Lodge  stated  that  the 
above  resolution  had  been  read,  amended,  and  ap- 
proved in  the  full  committee,  but  the  date  had  been 
left  open  for  consideration  by  the  Japanese  Dele- 
gates; and  that  he  had  since  received  a  letter  from 
Mr.  Hanihara  which  he  would  now  read : 

December  9,  1921. 

Dear  Sir  :  With  regard  to  the  proposed  abolition  of  foreign  postal 
agencies,  I  am  happy  to  inform  you  that  my  Government  have  no 
objection  to  the  initiation  of  the  ari^angement  as  from  the  date  in 
the  draft  resolution — that  is,  not  later  than  January  1,  1923. 

In  announcing  this  agreement  of  my  Government,  I  am  instructed 
to  state  before  the  committee  their  desire  concerning  the  main- 
tenance of  efficient  Chinese  postal  service  substantially  to  the  follow- 
ing effect : 


FOREIGN  POST  OFFICES  133 

Taking  into  account  the  fact  that  the  proposed  change  in  the 
postal  regime  in  China  can  not  fail  practically  to  affect  the  Japanese 
to  a  much  greater  extent  than  any  other  nationals,  the  Japanese 
Government  wish  to  place  on  record  their  desire  that  a  suitable 
number  of  experienced  Japanese  postal  officers  be  engaged  by  China, 
to  promote  the  efficiency  of  the  Chinese  postal  administration.  The 
rea^nableness  of  this  desire  will  readily  be  appreciated,  when  it 
is  considered  that  the  Powers  concerned  have  recognized  the  need 
of  effective  foreign  assistance  in  the  Chinese  postal  administration, 
and  that  no  less  than  seventy  British  subjects  and  twenty  French- 
men are  in  that  service,  while  Japan  is  there  represented  by  only 
two  experts. 

(Signed)  Me.  Haktihara. 

The  resolution  reported  by  the  sub-committee  with 
the  insertion  of  the  date  January  1,  1923,  was  there- 
upon put  to  vote  and  unanimously  approved. 

The  resolution,  as  approved  by  the  Committee  of 
the  Whole  was  reported  to  the  Conference  in  plenary 
session  at  the  fifth  session,  held  February  1, 1922,  and 
adopted  without  amendment  or  debate. 

Chinese  Statement.  At  the  fifteenth  meeting  of  the 
Committee,  held  December  12,  Mr.  Sze,  in  behalf  of 
the  Chinese  Delegation,  made  the  following  statement 
which  he  asked  to  be  recorded : 

Since  the  establishment  of  her  national  postal  service,  China  has 
at  all  times  handled  with  efficiency  all  foreign  mail.  She  appreciates 
that,  with  the  withdrawal  of  foreign  post  offices  from  her  soil,  the 
amount  of  foreign  mail  to  be  handled  by  her  own  postal  system  will 
be  increased.  This  increase  she  undertakes  to  handle  with  the  same 
efficiency  by  making  such  additions  to  the  personnel  and  equipment 
of  her  postal  service  as  will  be  required.  As  soon  as  the  Siberian 
route  is  re-opened  for  the  transportation  of  foreign  mail  matter  be- 
tween Asia  and  Europe,  steps  will  be  taken  to  make  arrangements 
for  the  transportation  of  such  mail  matter  as  was  formerly  trans- 


134  CHINA  AT  THE  CONFERENCE 

ported  by  this  route.  As  regards  actual  railway  transportation  of 
such  mail  China  will  hold  herself  responsible  for  uninterrupted 
service  upon  those  railways  or  sections  of  railways  within  her  juris- 
diction which  are  under  her  own  control  and  operation. 

With  reference  to  the  maintenance  of  foreign  post- 
offices  in  China  it  is  worthy  of  note  that,  in  the  sub- 
committee dealing  with  the  subject,  the  British  repre- 
sentative. Sir  Auckland  Geddes,  said  that  he  under- 
stood that  the  proposed  agreement  would  have  no 
effect  upon  foreign  post  offices  which  were  established 
in  leased  areas.  The  French  representative  said  that 
this  was  a  matter  to  be  considered  in  connection  with 
the  more  important  question  of  "  leased  areas."  The 
Japanese  representative,  Mr.  Hanihara,  said  that  he 
did  not  wish  to  see  railway  zones  or  leased  areas 
included  within  the  application  of  the  proposed  reso- 
lution. Sir  Auckland,  who  had  drafted  the  resolu- 
tion, said  that  it  had  not  been  his  intention  to  have  it 
apply  to  leased  areas.  Mr.  Hanihara  said  that, 
according  to  his  interpretation  of  the  treaties  between 
China  and  Japan,  Japan  had  the  right  to  establish 
post-offices  in  the  railway  zones  which  were  under  her 
control.  Asked  by  Mr.  Sze  as  to  the  treaty  provisions 
to  which  he  had  reference,  Mr.  Hanihara  said  that  the 
right  was  given  by  the  Portsmouth  Treaty  of  1905 
according  to  which  Japan  succeeded  to  the  rights  of 
Russia  in  the  railway  zones  in  South  Manchuria,  and 
that,  both  in  the  leased  area  and  railway  zones,  Japan 
had  every  kind  of  authority  including  that  of  taxa- 
tion and  postal  administration. 

This  discussion  led  to  the  insertion  in  the  first  para- 
graph of  the  Resolution  of  the  words  "  save  or  except 


FOREIGN  POST  OFFICES  135 

in  leased  territories  or  as  otherwise  specifically  pro- 
vided by  treaty. ' '  It  was,  however,  apparent  in  the 
discussion  that  was  had  that  Japan  received  no  sup- 
port from  the  other  Powers  for  the  proposition  that 
her  rights  of  administration  in  the  zones  of  the 
railways  controlled  by  her  carried  with  them  the 
right  to  maintain  in  them  post  offices  or  indeed  to 
exercise  any  other  than  ordinary  powers  of  railway 
operation.  Then  again  there  is  the  fact  that  the 
resolution  as  finally  framed  excepted  from  its  scope 
only  rights  **  specifically  "  provided  by  treaty,  and 
there  is  admittedly  no  specific  right  granted  to  Japan 
by  the  Portsmouth  Treaty  to  establish  post  offices  in 
her  railway  areas.  It  may  be  added  that,  at  this  time, 
it  was  expected  that  the  rights  of  Japan  within  rail- 
way zones  would  receive  further  discussion  when  the 
subject  of  railways  in  China  was  taken  up  by  the 
Conference — an  expectation  that  was  not  realized. 


CHAPTER  XI 

Foreign  Troops  and  Police  in  China 


Chinese  Statement.  At  the  eighth  meeting  of  the 
Committee  of  the  Whole,  held  November  28,  Mr.  Sze, 
in  behalf  of  the  Chinese  Delegation,  made  the  fol- 
lowing statement: 

At  the  session  held  on  November  21,  the  Conference  declared 
that  it  was  the  firm  intention  of  the  Powers  represented  to  respect 
the  sovereignty,  the  independence,  and  the  territorial  and  adminis- 
trative integrity  of  China;  and  to  provide  the  fullest  and  most  un- 
embarrassed opportunity  to  China  to  develop  and  maintain  for 
herself  an  effective  and  stable  government. 

It  will  have  already  appeared  that,  in  application  of  these  two 
principles,  China  is  asking  not  merely  that  existing  treaty  or  con- 
ventional limitations  upon  the  autonomous  and  unembarrassed 
exercise  by  her  or  her  territorial  and  administrative  powers,  should 
be  removed  as  rapidly  and  as  completely  as  circumstances  will 
justify,  but  that  conditions  shall  be  corrected  which  now  constitute 
a  continuing  violation  of  her  rights  as  an  independent  State.  The 
proposition  that  these  limitations  upon  the  exercise  of  her  sovereign 
powers  should  be  progressively  removed  was  stated  in  principle  No.  5 
which  the  Chinese  Delegation  presented  to  the  Conference  on 
November  16,  and  applications  of  it  are  seen  in  the  propositions  that 
have  been  made  to  the  Conference  with  reference  to  extraterritorial 
rights  and  to  tariff  autonomy. 

•  A  specific  illustration  of  a  violation  of  China's  sovereignty  and 
territorial  and  administrative  integrity,  as-  distinguished  from  limi- 
tations  based  upon  agreements  to  which  China  has  been  a  party, 
was  presented  to  the  Conference  for  correction  last  week  and  had  to 
do  with  the  maintenance  of  foreign  postal  services  upon  Chinese  soil. 
136 


FOREIGN  TROOPS  IN  CHINA  137 

This  morning  it  is  the  desire  of  the  Chinese  Delegation  to  bring 
before  you,  for  correction  in  accordance  with  the  controlling  Prin- 
ciples which  you  have  already  affirmed,  several  other  instances  of 
subsisting  violations  of  China's  sovereignty,  and  territorial  and  ad- 
ministrative integrity.  These  relate  to  the  maintenance  upon  the 
Chinese  territory  without  China's  consent  and  against  her  protests, 
of  foreign  troops,  railway  guards,  police  boxes  and  electrical  wire 
and  wireless  communication  installations. 

I  shall  not  exhaust  your  patience  by  enumerating  all  of  the  specific 
instances  of  these  violations,  for  I  shall  not  ask  merely  that  each  of 
these  violations  be  specifically  discountenanced,  for  this  would  not 
give  complete  relief  to  China  since  it  would  not  prevent  other 
similar  violations  in  the  future.  In  behalf  of  the  Chinese  Govern- 
ment I  therefore  ask  that  this  Conference  declare,  as  a  comprehen- 
sive proposition,  that  no  one  of  the  Powers  here  represented — China 
of  course  not  included — shall  maintain  electrical  communication  in- 
stallations, or  troops,  or  railway  guards,  or  police  boxes  upon  Chinese 
soil,  except  in  those  specific  cases  in  which  the  Powers  desiring  to  do 
so  may  be  able  to  show,  by  affirmative  and  preponderant  evidence  and 
argument  that  it  has  a  right  so  to  do  such  as  can  be  defended  upon 
the  basis  of  accepted  principles  of  international  law  and  practice 
and  with  the  consent  of  the  Chinese  Government. 

No  argument  by  me  is  needed  to  show  that  this  Conference  stands 
committed  to  the  declaration  which  I  now  ask,  by  the  Principles 
which  were  adopted  on  November  21.  Should  any  one  of  you  con- 
sider the  possibility  of  foreign  troops  or  railway  guards,  or  police 
boxes,  or  electrical  communication  installations  being  maintained 
upon  the  soil  of  your  own  country  without  the  consent  of  the  govern- 
ment which  you  represent,  your  feelings  of  justice  and  your  sense 
of  the  dignity  due  to  your  own  State,  would  make  evident  to  you 
the  propriety  of  the  joint  declaration  which  China  now  asks  you 
to  make  in  her  behalf.  The  proposition  surely  stands  self-evident 
that,  if  a  nation  asserts  a  right  to  maintain  troops,  or  guards,  or 
police,  or  to  erect  and  operate  systems  of  communication  upon  the 
soil  of  another  State,  whose  sovereignty  and  independence  and 
territorial  and  administrative  integrity  it  has  just  solemnly  affirmed 
and  obligated  itself  to  respect,  upon  that  State  should  lie  a  heavy 


138  CHINA  AT  THE  CONFERENCE 

burden  of  proof  to  justify  so  grievous  an  infringement  of  the  rights 
of  exclusive  territorial  jurisdiction  which  international  law  as  well 
as  a  general  sense  of  international  comity  and  justice,  recognize  as 
attaching  to  the  status  of  sovereignty  and  independence. 

In  behalf  of  my  Government  and  the  people  whom  I  represent,  I 
therefore  ask  that  the  Conference  give  its  approval  to  the  following 
proposition : 

"  Each  of  the  Powers  attending  this  Conference  hereinafter  men- 
tioned, to  wit,  the  United  States  of  America,  Belgium,  the  British 
Empire,  France,  Italy,  Japan,  the  Netherlands,  and  Portugal, 
severally  declare  that,  without  the  consent  of  the  Government  of 
China,  expressly  and  specifically  given  in  each  case,  it  will  not 
station  troops,  or  railway  guards  or  establish  and  maintain  police 
boxes,  or  erect  or  operate  electrical  communication  installations, 
upon  the  soil  of  China;  and  that  if  there  now  exist  upon  the  soil 
of  China  such  troops  or  railway  guards  or  police  boxes  or  electrical 
installations  without  China's  express  consent,  they  will  be  at  once 
withdrawn." 

Upon  request  of  the  Committee,  the  Chinese  Dele- 
gation, at  the  ninth  meeting,  held  November  29,  sub- 
mitted a  Memorandum  showing,  according  to  its 
information,  the  foreign  troops,  police,  *'  railway 
guards"  and  electrical  installations  upon  the  soil  of 
China  without  the  consent  of  the  Chinese  Govern- 
ment. 

This  information  (the  Memorandum  declared)  is  furnished  sim- 
ply in  order  to  show  the  extent  to  which  China's  territorial  and  ad- 
ministrative integrity  is  now  being  violated,  and  not  as  implying  that 
the  Chinese  Government  will  be  contented  with  the  abatement  of 
these  specific  violations  of  her  sovereign  rights;  for  China,  as  de- 
clared in  the  resolution  which  it  has  proposed,  desires  that  there 
should  be  a  general  or  comprehensive  declaration  upon  the  part  of  the 
powers  represented  in  this  conference  that,  without  China's  consent, 
expressly  and  specifically  given  in  each  case,  they  will  not  maintain 
troops  or  police  boxes,  or  railway  guards  or  electrical  installations 
upon  China's  soil,  with  the  result  that  upon  the  powers  will  lie  the 


FOEEIQN  TROOPS  IN  CHINA  139 

burden  of  establishing  their  right  to  do  so  in  each  case  in  which  they 
may  assert  a  right  or  claim  to  maintain  upon  China's  soil  such 
troops,  police  boxes,  railway  guards,  or  electrical  installations. 

The  resolution  proposed  by  the  Chinese  delegation  will  not  affect 
the  rights  of  the  powers  obtained  under  the  protocol  agreement  of 
1901,  nor  their  right  to  maintain  police  forces  in  their  various 
municipal  settlements  and  concessions.  If,  as  to  these  matters,  any 
revision  should  be  desired,  separate  discussion  or  negotiation  may 
be  had.^ 

Japanese  Statement.  In  rejoinder  to  this  statement 
upon  the  part  of  the  Chinese  Delegation,  the  Japanese 
Delegation  submitted  a  rejoinder  in  which  it  was  said 
that  the  draft  resolution  which  the  Chinese  had  pro- 
posed was,  in  effect,  embodied  in  the  first  of  the  Root 
Resolutions  that  had  already  been  adopted,  and  there- 
fore, that  its  adoption  would  be  repetitious.  The 
Japanese  Delegation,  the  statement  said  '*  is  further 
persuaded  that  the  withdrawal  or  abolition  of  the 
foregoing  troops,  railway  guards,  police  stations,  and 
telegraph  and  wireless  installations  should  not  be 
immediately  decided  simply  because  the  Chinese 
authorities  have  not  given  them  their  express  con- 
sents. There  are  specific  reasons  for  the  existence  of 
such  institutions  in  each  special  case.  We  are  pre- 
pared to  explain  these  specific  reasons  which  have 
brought  about  the  existing  conditions  in  the  cases  in 
which  Japan  is  concerned.** 

Mr.  Sze  replying,  in  behalf  of  the  Chinese  Dele- 
gation, said  that  No.  5  of  the  Chinese  Ten  Points  had 
used  the  term  **  immediately  "  as  well  as  the  phrase 
"  as  soon  as  circumstances  will  permit,**  and  that  the 

*The  matter  of  electrical  installations  will  be  separately  considered  in 
the  next  chapter. 


140  CHINA  AT  THE  CONFERENCE 

matters  of  troops,  railway  guards,  etc.,  furnished 
instances  in  which  immediate  relief  was  properly 
demandable,  and,  therefore,  that  the  Chinese  had 
asked  that  they  be  at  once  withdrawn.  He  added  that 
the  Chinese  Delegation  would  be  glad  to  have  the 
Japanese  Delegation  furnish  the  data  which  it 
claimed  to  have  in  substantiation  of  its  view  that  im- 
mediate withdrawal  should  not  be  provided  for.  Mr. 
Hanihara,  of  the  Japanese  Delegation,  then  read  the 
following  statement : 

The  Japanese  Delegation  wishes  to  explain,  as  succinctly  as  pos- 
sible, why  and  how  the  Japanese  garrisons  in  various  parts  of  China 
have  come  to  be  stationed  there.  At  the  outset,  however,  I  desire  to 
disclaim  most  emphatically  that  Japan  has  ever  entertained  any 
aggressive  purposes  or  any  desire  to  encroach  illegitimately  upon 
Chinese  sovereignty  in  sending  or  maintaining  these  garrisons  in 
China. 

(1)  Japanese  railway  guards  are  actually  maintained  along  the 
South  Manchuria  Railway  and  the  Shantung  Railway. 

With  regard  to  the  Shantung  Railway  guards,  Japan  believes  that 
she  has  on  more  than  one  occasion  made  her  position  sufficiently 
clear.  She  has  declared  and  now  reaffirms  her  intention  of  with- 
drawing such  guards  as  soon  as  China  shall  have  notified  her  that  a 
Chinese  police  force  has  been  duly  organized  and  is  ready  to  take 
over  the  charge  of  the  railway  protection. 

The  maintenance  of  troops  along  the  South  Manchuria  Railway 
stands  on  a  different  footing.  This  is  conceded  and  recognized  by 
China  under  the  Treaty  of  Peking  of  1905.  (Additional  Agree- 
ment, Art.  II.)  It  is  a  measure  of  absolute  necessity  under  the 
existing  state  of  affairs  in  Manchuria — a  region  which  has  been 
made  notorious  by  the  activity  of  mounted  bandits.  Even  in  the 
presence  of  Japanese  troops,  those  bandits  have  made  repeated  at- 
tempts to  raid  the  railway  zone.  In  a  large  number  of  cases  they 
have  cut  telegraph  lines  and  committed  other  acts  of  ravage.  Their 
lawless  activity  on  an  extended  scale  has,  however,  been  effectively 


FOREIGN  TROOPS  IN  CHINA  141 

checked  by  Japanese  railway  guards,  and  general  security  has  been 
maintained  for  civilian  residents  in  and  around  the  railway  zone. 
The  efficiency  of  such  guards  will  be  made  all  the  more  significant 
by  a  comparison  of  the  conditions  prevailing  in  the  railway  zone  with 
those  prevailing  in  the  districts  remote  from  the  railway.  The 
withdrawal  of  railway  guards  from  the  zone  of  the  South  Manchuria 
Railway  will  no  doubt  leave  those  districts  at  the  mercy  of  bandits, 
and  the  same  conditions  of  unrest  will  there  prevail  as  in  remote 
corners  of  Manchuria.  In  such  a  situation  it  is  not  possible  for 
Japan  to  forego  the  right,  or  rather  the  duty,  of  maintaining  railway 
guards  in  Manchuria,  whose  presence  is  duly  recognized  by  treaty. 

(2)  Towards  the  end  of  1911  the  first  Revolution  broke  out  in 
China,  and  there  was  complete  disorder  in  the  Hupeh  district  which 
formed  the  base  of  the  revolutionary  operations.  As  the  lives  and 
property  of  foreigners  were  exposed  to  danger,  Japan  together  with 
Great  Britain,  Russia,  Germany,  and  other  principal  Powers,  dis- 
patched troops  to  Hankow  for  the  protection  of  her  people.  This  is 
how  a  small  number  of  troops  have  come  to  be  stationed  at  Hankow. 
The  region  has  since  been  the  scene  of  frequent  disturbances ;  there 
were  recently  a  clash  between  the  North  and  South  at  Changsha, 
pillage  by  troops  at  Ichang,  and  a  mutiny  of  soldiers  at  Hankow. 
Such  conditions  of  unrest  have  naturally  retarded  the  withdrawal  of 
Japanese  troops  from  Hankow. 

It  has  never  been  intended  that  these  troops  should  remain  per- 
manently at  Hankow,  and  the  Japanese  Government  have  been  look- 
ing forward  to  an  early  opportunity  of  effecting  complete  withdrawal 
of  the  Hankow  garrison.  They  must  be  assured,  however,  that  China 
will  immediately  take  effective  measures  for  the  maintenance  of 
peace  and  order  and  for  the  protection  of  foreigners,  and  that  she 
will  fully  assume  the  responsibility  for  the  damage  that  may  be  or 
may  have  been  done  to  foreigners. 

(3)  The  stationing  of  the  garrisons  of  foreign  countries  in  North 
China  is  recognized  by  the  Chinese  Government  under  the  protocol 
relating  to  the  Boxer  revolution  of  1900.  Provided  there  is  no 
objection  from  the  other  countries  concerned,  Japan  will  be  ready, 
acting  in  unison  with  them,  to  withdraw  her  garrison  as  soon  as  the 
actual  conditions  warrant  it. 


142  CHINA  AT  THE  CONFEEENCE 

(4)  The  Japanese  troops  scattered  along  the  lines  of  the  Chinese 
Eastern  Railway  have  been  stationed  in  connection  with  an  inter- 
allied agreement  concluded  at  Vladivostok  in  1919.  Their  duties 
are  to  establish  communication  between  the  Japanese  contingents  in 
Siberia  and  South  Manchuria.  It  goes  without  saying,  therefore, 
that  these  troops  will  be  withdrawn  as  soon  as  the  evacuation  of 
Siberia  by  the  Japanese  troops  is  effected. 

The  Chairman  of  the  Committee,  Secretary- 
Hughes,  asked  Mr.  Hanihara  if  his  Delegation  relied 
upon  Article  II  of  the  Additional  Agreement  to  the 
Sino-Japanese  of  December  22, 1905.  Mr.  Hanihara 
said  that  it  did.' 

With  regard  to  Police  or  **  Police  Boxes,"  as  dis- 
tinguished from  Troops,  Mr.  Hanihara,  in  behalf  of 
the  Japanese  Delegation,  made  the  following  state- 
ments ; 

In  considering  the  question  of  Japanese  consular  police  in  China, 
two  points  must  be  taken  in  account. 

(1)  Such  police  do  not  interfere  with  Chinese  or  other  foreign 
nationals.  Their  functions  are  strictly  confined  to  the  protection 
and  control  of  Japanese  subjects. 

(2)  The  most  important  duties  with  which  the  Japanese  police 
are  charged  are,  first,  to  prevent  the  commission  of  crimes  by 
Japanese,  and  second,  to  find  and  prosecute  Japanese  criminals 
when  crimes  are  coinmitted. 

'  This  Article  is  as  follows: 

"Article  II.  In  view  of  the  earnest  desire  expressed  by  the  Imperial 
Chinese  Government  to  have  the  Japanese  and  Russian  troops  and  railway 
guards  in  Manchuria  withdrawn  as  soon  as  possible,  and  in  order  to  meet 
this  desire,  the  Imperial  Japanese  Government,  in  the  event  of  Russia 
agreeing  to  the  withdrawal  of  her  railway  guards,  or  in  case  other  proper 
measures  are  agreed  to  between  China  and  Russia,  consent  to  take  similar 
steps  accordingly.  When  tranquillity  shall  have  been  reestablished  in 
Manchuria,  and  China  shall  have  become  herself  capable  of  affording  full 
protection  to  the  lives  and  property  of  foreigners,  Japan  will  withdraw 
her  railway  guards  simultaneously  with  Russia." 


rOEEIGN  TEOOPS  IN  CHINA  143 

In  view  of  the  geographical  proximity  of  the  two  countries,  it  is 
natural  that  certain  disorderly  elements  in  Japan  should  move  to 
China,  and,  taking  advantage  of  the  present  conditions  in  that 
country,  should  there  undertake  unlawful  activities.  When  these 
lawless  persons  are  caught  in  the  act  of  crime  by  the  Chinese  police, 
it  is  not  difficult  for  that  police  force  to  deal  with  the  case.  The 
culprits  are  handed  over  as  early  as  possible  to  the  Japanese  authori- 
ties for  prosecution  and  trial.  But  when  the  criminals  flee  from  the 
scene  of  their  acts,  it  is  in  many  cases  hard  to  discover  who  com- 
mitted the  crimes  and  what  were  the  causes  and  circumstances  that 
led  up  to  their  commission.  This  is  more  difficult  for  the  Chinese 
authorities,  as  they  have  no  power  to  make  domiciliary  visits  to  the 
homes  of  foreigners,  who  enjoy  extraterritorial  rights,  or  to  obtain 
judicial  testimony  in  due  form  from  such  foreigners : 

Without  the  full  cooperation  of  the  Japanese  police,  therefore, 
the  punishment  of  crime  is,  in  a  great  many  cases,  an  impossibility, 
and  those  who  are  responsible  for  lawbreaking  escape  trial  and 
punishment. 

This  tendency  is  especially  evident  in  Manchuria  in  which  region 
hundreds  of  thousands  of  Japanese  are  resident.  In  places  where 
the  Japanese  police  are  stationed,  there  are  far  fewer  criminal  cases 
among  Japanese  than  in  places  without  Japanese  police.  Lawless 
elements  constantly  move  to  districts  beyond  the  reach  of  Japanese 
police  supervision. 

Apart  from  the  theoretical  side  of  the  question,  it  wiU  thus  be 
observed  that  the  stationing  of  Japanese  police  in  the  interior  of 
China  has  proved  to  be  of  much  practical  usefulness  in  the  preven- 
tion of  crimes  among  Japanese  residents,  without  interfering  with 
the  daily  life  of  Chinese  or  of  other  foreign  nationals.  The 
Japanese  policing  provides  a  protection  for  the  Chinese  com- 
munities which  at  present  their  own  organization  fails  to  provide. 

The  Japanese  delegation  is  in  possession  of  knowledge  and  in- 
formation as  to  the  actual  conditions  prevailing  in  China  and 
especially  in  Manchuria.  However,  it  is  unnecessary  to  go  into 
details  at  the  present  stage. 

Chinese  Rejoinder.  Mr.  Sze  stated  that  both  of 
these  matters  were  serious  infringements  of  China's 


144  CHINA  AT  THE  CONFERENCE 

sovereignty  and  integrity,  and  that  there  was  nothing 
in  international  law  permitting  one  country  to  station 
troops  or  police  upon  the  soil  of  another,  especially 
over  the  protest  of  the  latter.  While  expressing 
admiration  for  the  efficiency  of  the  Japanese  police 
system  and  thanking  Mr.  Hanihara  for  his  explana- 
tion of  conditions,  he  could  not  accept  that  as  justify- 
ing the  presence  of  Japanese  police,  and  he  hoped  that 
Japan  would  be  able  to  check  Japanese  law-breakers 
at  the  source  and  to  prevent  their  coming  to  China. 
In  conclusion,  while  reserving  the  right  to  reply 
further  after  study,  he  observed  that  the  Chinese 
nation  could  not  look  upon  the  presence  of  these 
troops  and  police  without  concern. 

At  the  tenth  meeting  of  the  Committee,  held 
December  2,  the  Chinese  Delegation  submitted  an 
elaborate  statement,  which,  except  as  to  an  introduc- 
tory paragraph,  is  here  reproduced. 

The  Chinese  Delegation  wishes  to  make  it  clear  that  its  proposal 
is  advanced  not  only  because  China  has  not  given  its  consent  to  these 
breaches  of  its  sovereign  rights,  but  also  because  the  breaches  were 
deliberately  made  and  insistently  continued  even  in  the  face  of  the 
formal  protests  of  the  Chinese  Government  and  the  unanimous 
opposition  of  the  Chinese  people.  In  view  of  the  fact  that  the  in- 
fringements in  question  are  of  many  years  standing,  it  is  believed 
the  Conference  will  agree  that  China  has  not  unduly  pressed  for  the 
termination  of  them. 

As  to  the  withdrawal  of  Japanese  troops  from  the  Shantung  Rail- 
way, the  Japanese  delegation  states  that  "  she  has  on  more  than  one 
occasion  made  her  position  sufficiently  clear.  She  has  declared  and 
now  reaffirms  her  intention  of  withdrawing  such  guards  as  soon  as 
China  shall  have  notified  her  that  a  Chinese  police  force  has  been 
duly  organized  and  is  ready  to  take  over  the  charge  of  the  railway 
protection." 


FOEEIGlSr  TROOPS  IN  CHINA  145 

It  should  be  noted  that  China  has  repeatedly  sent  notice  to  Japan 
that  her  police  forces  are  well  organized  and  prepared  to  assume  the 
protection  of  the  railway ;  and  the  Chinese  delegation,  on  behalf  of 
the  Chinese  Government,  hereby  again  offers  to  take  charge  of 
the  Shantung  Railway  with  a  well  organized  police  force  of  its  own 
and  to  protect  the  same. 

As  to  the  grounds  for  stationing  Japanese  troops  along  the  South 
Manchuria  Railway,  Japan  appears  to  rely  on  the  additional  agree- 
ment to  the  treaty  of  December  22, 1905,  between  Japan  and  China, 
and  on  the  disturbed  conditions  in  Manchuria.  The  treaty  of 
December  22,  1905,  provides : 

"  Aeticle  I.  The  Imperial  Chinese  Government  consents  to  all 
the  transfers  and  assignments  made  by  Russia  to  Japan  by  Articles 
V  and  VI  of  the  treaty  of  peace  above  mentioned."  The  pertinent 
article  of  the  treaty  of  peace  of  September  5,  1905,  between  Russia 
and  Japan,  is  Article  VI  which  provides  for  the  transfer  by  Russia 
to  Japan,  with  the  consent  of  China  (which  was  procured  as  above 
stated),  of  the  South  Manchurian  Railway,  "  together  with  all  rights, 
privileges  and  properties  appertaining  thereto  in  that  region." 

Article  III  of  the  same  treaty  provides : 

"1.  To  evacuate  completely  and  simultaneously  Manchuria  ex- 
cept the  territory  affected  by  the  lease  of  the  Liao-tung  Peninsula,  in 
conformity  with  provisions  of  additional  Article  I,  annexed  to  this 
treaty;  and 

"  2.  To  restore  entirely  and  completely  to  the  exclusive  adminis- 
tration of  China  all  portions  of  Manchuria  now  in  occupation  or 
under  the  control  of  the  Japanese  or  Russian  troops,  with  the  excep- 
tion of  the  territory  above  mentioned. 

"  The  Imperial  Government  of  Russia  declares  that  they  have  not 
in  Manchuria  any  territorial  advantages  or  preferential  or  exclusive 
concessions  in  impairment  of  Chinese  sovereignty  or  inconsistent 
with  the  principle  of  equal  opportunity." 

Article  II  of  the  additional  agreement  referred  to  provides : 

"  Article  II.    In  view  of  the  earnest  desire  expressed  by  the 
Imperial  Chinese  Government  to  have  the  Japanese  and  Russian 
troops  and  railway  guards  in  Manchuria  withdrawn  as  soon  as  pos- 
sible, and  in  order  to  meet  this  desire,  the  Imperial  Japanese  Gov- 
11 


146  CHINA  AT  THE  CONFERENCE 

emment,  in  the  event  of  Russia's  agreeing  to  the  withdrawal  of  her 
railway  guards,  or  in  case  other  proper  measures  are  agreed  to 
between  China  and  Russia,  consent  to  take  similar  steps.  Accord- 
ingly, when  tranquillity  shall  have  been  reestablished  in  Manchuria 
and  China  shall  have  become  herself  .capable  of  affording  full  pro- 
tection to  the  lives  and  property  of  foreigners,  Japan  will  withdraw 
her  railway  guards  simultaneously  with  Russia." 

Russia  has  withdrawn  her  troops  from  Manchuria,  but  Japan  has 
retained  hers,  as  she  states,  under  Article  II  of  the  additional  agree- 
ment quoted.  China  has  time  and  again  oifered  to  take  over  the  pro- 
tection of  the  South  Manchuria  Railway  and  requested  Japan  to 
withdraw  her  troops.  If  Japan  continues  to  maintain  that  the 
alleged  existing  state  of  banditry  in  Manchuria  requires  the  presence 
of  Japanese  troops  as  a  "  measure  of  absolute  necessity,"  China  may 
never  have  an  opportunity  to  show  that  she  is  capable  of  affording 
protection  to  the  lives  and  property  of  foreigners.  Moreover,  the 
mere  presence  of  Japanese  troops  themselves  makes  for  friction  with 
the  natives  and  arouses  rather  than  allays  disorders  throughout  the 
adjacent  districts.  The  Japanese  delegation  refers  to  a  "  large  num- 
ber of  cases  "  of  cutting  "  telegraph  lines  "  and  committing  "  other 
acts  of  ravage."  These  cases  do  not  appear  to  be  serious  ones. 
Similar  cases  occur  every  day  even  in  the  best  regulated  States.  But 
in  China  especially  many  cases  of  disturbance  may  be  traced  directly 
to  the  presence  or  activities  of  Japanese  troops  along  the  railway. 

Consequently  China  asks  to  be  given  an  opportunity  to  show  that 
she  can  maintain  order  along  the  South  Manchuria  Railway.  The 
opportunity  can  only  be  granted  if  Japan  will  withdraw  her  forces, 
which  China  asks  be  done  for  the  reasons  given.  The  present  condi- 
tions of  Japanese  military  control  have  continued  for  over  15  years 
and  on  the  present  contentions  of  the  Japanese  delegation  may  be 
prolonged  indefinitely  at  the  will  of  Japan.  China  can  not  continue 
to  submit  to  these  infractions  of  its  territorial  and  administrative 
integrity  and  asks  the  conference  to  take  definite  measures  to  bring 
these  irritating  controversies  to  a  close. 

The  Japanese  delegation  refers  to  the  presence  of  Japanese  troops 
at  Hankow  and  gives  as  a  reason  the  revolution  of  1911  and  subse- 
quent disorders.     It  should  be  pointed  out,  however,  that  Great 


FOREIGN  TROOPS  IN  CHINA  147 

Britain,  Russia,  Germany,  and  the  other  powers  forthwith  withdrew 
their  troops  and  that  Japan  is  the  only  country  that  insists  on  their 
continuance.  This  insistence  is  based  on  continued  disorders,  but  it 
will  be  noted  that  the  other  powers  have  ijot  felt  constrained  to  again 
introduce  troops  into  that  region.  The  disorders,  therefore,  must  be 
of  minor  importance,  as  compared  with  those  of  1911,  which  caused 
the  entry  of  foreign  military  forces.  The  only  special  reason  that 
Japan  can  advance  therefor  is  the  presence  of  larger  numbers  of 
Japanese  in  that  region  than  subjects  of  any  other  power.  But  this 
has  never  been  a  valid  reason  for  quartering  troops  on  the  soil  of  a 
friendly  country  for  an  indefinite  period.  It  is  said  that  at  Hankow 
the  Japanese  forces  have  erected  substantial  barracks  of  a  more  or 
less  permanent  character. 

The  Japanese  delegation  declares  that  Japan  is  looking  forward 
to  an  early  opportunity  of  effecting  the  complete  withdrawal  of  the 
Hankow  garrison.  China  now  offers  Japan  this  opportunity  by 
undertaking  to  maintain  peace  and  order  and  the  protection  of 
foreigners. 

Japan  further  asks  that  China  will  fully  assume  the  responsi- 
bility for  damage  that  may  be  or  may  have  been  done  to  foreigners. 
This  is  an  unusual  condition  and  one  which  it  is  believed  no  sov- 
ereign power  would  give  in  advance.  The  question  of  damages 
already  sustained,  if  any,  by  Japanese  subjects  is  a  matter  which  may 
readily  be  settled  by  a  mixed  board  or  commission  and  need  not, 
therefore,  be  made  a  condition  for  the  withdrawal  of  Japanese 
troops.  No  government  can  absolutely  guarantee  the  protection  of 
foreigners  any  more  than  it  can  absolutely  guarantee  the  protection 
of  its  own  nationals.  Moreover,  every  violation  of  that  degree  of 
protection  which  international  law  assumes  that  a  government  shall 
give  is  not  a  ground  for  military  intervention  or  the  dispatching  of 
troops  to  the  district  in  disorder.  If  the  rule  were  the  contrary 
every  country  would  have  garrisons  of  foreign  troops  stationed  at 
various  quarters  within  its  territory.  The  normal  procedure  is  for 
a  foreign  government,  whose  nationals  are  threatened  on  account  of 
disorders  in  a  friendly  country,  to  call  upon  the  government  of  that 
country  to  accord  them  adequate  protection.  If,  nevertheless,  loss  of 
life  or  damages  to  property  is  sustained,  the  usual  course  is  to  have 


148  CHINA  AT  THE  CONFERENCE 

an  investigation  of  the  facts,  and,  if  they  warrant  it,  to  reqnest 
amends  by  way  of  pecuniary  compensation.  It  is  well  known  that 
the  Chinese  Government  has  in  the  past  made  every  effort  to  satisfy 
such  demands  in  the  most  liberal  manner. 

As  to  the  stationing  of  garrison  of  foreign  countries  in  North 
China,  under  the  protocol  of  1901,  China  admits  that  such  troops 
are  quartered  in  China  with  her  express  and  formal  approval. 
While  China  is  desirous  eventually  of  having  these  troops  removed, 
it  wishes  to  defer  the  consideration  of  this  question  at  the  present 
conference,  limiting  itself  now  to  the  request  for  the  cessation  of 
violations  of  its  territorial  and  administrative  integrity  which  have 
taken  place  without  her  free  consent. 

It  is  said  that  Japanese  troops  along  the  Chinese  Eastern  Rail- 
way are  maintained  in  connection  with  an  interallied  agreement  con- 
cluded in  Vladivostok  in  1919,  and  for  the  purpose  of  establishing 
communication  between  the  Japanese  contingents  in  Siberia  and 
South  Manchuria. 

The  interallied  agreement  of  1919  was  concluded  as  a  result  of 
negotiations  extending  through  the  summer  and  autumn  of  1918 
with  reference  to  the  allied  military  control  of  the  Trans-Siberian 
Railway,  and  this  agreement,  approved  by  all  of  the  allied  represent- 
atives at  Vladivostok  and  by  certain  Russian  authorities,  expressly 
provided  for  supervision  by  international  or  Russian  control  and 
not  by  any  one  power.  Moreover,  the  purpose  of  this  agreement  was 
to  keep  the  Siberian  Railway  opened  as  a  line  of  communication  for 
the  Czecho-Slovak  troops  which  were  operating  in  Siberia.  The 
object  of  interallied  control  of  the  railroad  was  to  avoid  control  by 
a  single  country  which  might  arouse  suspicion  as  to  the  political 
intentions  of  any  such  country.  However,  it  appears  that  under 
this  agreement  Japan  sent  such  a  large  number  of  troops  as  to  indi- 
cate a  departure  on  its  part  from  the  purposes  of  the  agreement. 
As  the  objects  and  purposes  of  the  allied  agreement  have  long  since 
disappeared,  the  other  allied  troops  have  long  ago  been  withdrawn 
from  Siberia  and  the  Chinese  Eastern  Railway,  but  the  Japanese 
troops  still  remain  in  both  localities  without  any  apparent  vestige 
of  authority.  As  to  the  necessity  for  maintaining  troops  along  the 
Chinese  Eastern  Railway  to  establish  communication  between  the 


FOREIGN  TROOPS  IN  CHINA  149 

Japanese  contingents  in  Siberia  and  South  Manchuria,  it  need  only 
be  pointed  out  that  this  argument  might  be  made  the  excuse  for 
placing  additional  troops  in  Chinese  territory  in  order  to  establish 
communication  with  garrisons  already  quartered  at  various  points. 
As  the  general  question  of  the  Chinese  Eastern  Railway  is  a  special 
subject  on  the  American  agenda,  it  is  thought  fit  to  postpone  further 
discussion  of  matters  relating  to  it  until  that  point  of  the  agenda 
is  taken  up. 

To  endeavor  to  defend  the  maintenance  of  Japanese  police  in 
Manchuria  by  saying  that  they  do  not  interfere  with  Chinese  or 
other  foreign  nationals,  that  their  functions  are  restricted  to  the 
protection  and  control  of  Japanese  subjects,  and  that  their  duties 
are  to  prevent  the  commissions  of  crime  by  Japanese  and  to  appre- 
hend Japanese  criminals  is  to  lead  the  conference  far  afield  from 
the  point  at  issue,  namely,  the  illegal  and  unwarranted  infraction 
of  Chinese  territorial  and  administrative  integrity.  The  reasons 
advanced  have  never  been  regarded  in  international  law  and  practice 
as  sufiicient  to  justify  the  institution  of  police  administration  in 
a  foreign  friendly  country. 

The  Chinese  delegation  questions  the  statement  that  the  Japanese 
police  do  not  interfere  with  Chinese.  It  can  present  numerous 
instances  in  which  Japanese  poHce  have  arrested  Chinese  and  other- 
wise molested  them  on  Chinese  soil.  The  argument  that  under  the 
system  of  extraterritoriality  inconveniences  occur  in  the  arrest  of 
Japanese  offenders  or  in  procuring  evidence  for  use  in  trial  are  only 
arguments  in  favor  of  the  surrender  of  extraterritorial  rights.  Other 
powers  enjoying  these  rights  in  China  do  not  pretend  that  they 
carry  with  them  the  right  of  police.  The  ground  of  extraterri- 
toriality being  disposed  of,  it  may  be  said  that  mere  numbers  of 
Japanese  residents  in  Manchuria  is  not  a  sufficient  or  proper  ground 
for  the  establishment  of  a  police  administration. 

In  conclusion  it  may  be  pointed  out  that  the  extension  of  Jap- 
anese military  or  police  control  over  Chinese  districts  has  been 
gradually  expanding  from  very  small  beginnings  in  about  1900 
and  spreading  out  in  various  directions  wherever  an  opportunity 
offered  itself.  China  asks  the  conference  to  take  appropriate  meas- 
ures to  prevent  further  aggressions  of  this  character  and  to  relieve 


160  CHINA  AT  THE  CONFERENCE 

China  of  these  impositions  under  which  it  is  laboring  to  maintain 
its  independence  and  integrity. 

Japanese  Reply.  At  the  thirteenth  meeting  of  the 
Committee  of  the  Whole,  Mr.  Hanihara,  in  behalf  of 
the  Japanese  Delegation,  submitted  a  reply  to  the 
Chinese  statement  that  has  been  given.  The  essential 
portions  of  this  reply  were  as  follows : 

With  reference  to  the  Shantung  Eailway  Guards,  China  has  de- 
clared her  intention  to  send  a  suitable  force  of  Chinese  police  for 
the  protection  of  the  Railway.  She  has,  however,  so  far  failed  to  send 
any  such  police  force  to  whom  the  Japanese  troops  can  actually  hand 
over  the  duties. 

The  fact  pointed  out  by  the  Chinese  Delegation  that  Russia  has 
withdrawn  her  troops  from  Manchuria  apparently  refers  to  the  con- 
dition of  things  created  by  the  existing  anomalous  situation  in 
Russia.  It  does  not  prove  that  Russia  has  definitely  agreed  to  the 
withdrawal  of  her  troops  as  is  contemplated  in  the  Sino-Japanese 
Agreement  of  1905. 

That  Agreement  also  provides  that  when  tranquillity  shall  have 
been  re-established  in  Manchuria  and  when  China  shall  have  become 
herself  capable  of  affording  full  protection  to  the  lives  and  property 
of  foreigners,  Japan  will  withdraw  her  railway  guards  simul- 
taneously with  Russia.  Referring  to  that  provision  I  would  like  to 
invite  the  attention  of  the  Committee  to  the  actual  conditions  de- 
scribed in  the  written  statement  which  I  shall  presently  lay  before 
you. 

As  for  the  contention  that  China  should  be  given  an  opportunity 
of  proving  her  ability  to  maintain  peace  and  order  in  Manchuria, 
the  reply  is  obvious :  Japanese  interests  and  Japanese  security  are 
matters  of  such  importance  that  she  cannot  afford  to  take  obvious 
risks. 

With  regard  to  the  stationing  of  Japanese  troops  at  Hankow, 
I  believe  that  I  have  made  our  position  sufficiently  clear  at  a  previous 
meeting  of  the  Committee,  and  I  shall  not  attempt  to  repeat  it. 
I  would  only  add  that  in  many  cases  of  local  disturbances  in  and 


FOREIGN  TROOPS  IN  CHINA  151 

around  Hankow,  the  menace  to  the  security  of  foreign  communities 
in  general  assumed  so  serious  a  propori;ion  that  those  various  com- 
munities organized  volunteer  corps  for  their  self-protection,  and 
that  the  Japanese  garrison  was  called  upon  to  extend  active  assis- 
tance and  cooperation  to  the  foreign  volunteer  corps. 

In  connection  with  the  subject  of  Japanese  troops  stationed  along 
the  Chinese  Eastern  Railway,  criticisms  have  been  made  by  the 
Chinese  Delegation  on  the  continued  presence  of  Japanese  expedi- 
tionary forces  in  Siberia.  The  Japanese  Delegation  desires  to  re- 
serve the  discussion  of  this  question  for  a  suitable  opportunity  which 
will  later  on  be  afforded  by  the  Conference.  For  the  present,  I  shall 
content  myself  by  pointing  out  that  the  stationing  of  Japanese 
troops  along  the  Chinese  Eastern  Railway  is  due  to  the  Inter-Allied 
Agreement  of  1918,  in  which  China  participated,  and  that  those 
troops  will  be  withdrawn  immediately  upon  the  evacuation  of  Mari- 
time Province  by  Japanese  forces. 

In  connection  with  this  reply,  Mr.  Hanihara  filed 
with  the  Committee  Appendices  giving,  facts  as  the 
Japanese  Delegation  conceived  them  to  be,  regarding 
conditions  of  law  and  order  or  disorder  in  Manchuria 
and  elsewhere  in  China.' 

Commission  of  Inquiry  Proposed.  In  the  discus- 
sion which  followed  the  presentation  of  these  state- 
ments M.  Viviani  suggested  that,  since  a  commission 
of  jurists  had  already  been  provided  for,  charged 
with  the  fimction  of  investigating  upon  the  spot  the 
question   of   extraterritoriality,   it   should   also   be 

'The  Chinese  Delegation  was  rather  surprised  to  find  these  appendices 
published  in  the  report  of  the  Conference  (Senate  Document  No.  126), 
since  these  documents,  while  circulated  by  the  Japanese  Delegation,  were 
never  discussed  in  the  Conference  or,  as  the  Chinese  Delegation  supposed, 
released  for  publication.  The  Chinese  Delegation  itself  circulated  state- 
ments of  facts  showing  the  extent  to  which  the  Japanese  troops  in  China 
had  caused,  rather  than  prevented,  disorder,  and  that,  indeed,  in  a  con- 
siderable number  of  cases,  they  had  even  cooperated,  under  the  direction 
of  the  Japanese  General  Stafif,  with  lawless  elements  in  China. 


152  CHINA  AT  THE  CONFERENCE 

authorized  to  examine  as  to  the  necessity  for  the  con- 
tinued maintenance  of  foreign  troops  upon  Chinese 
soil. 

Mr.  Sze  said  that  his  Delegation  did  not  deem  it 
wise  that  a  commission  of  inquiry  of  such  a  nature 
should  be  sent  to  China;  that  there  was  no  analogy 
between  the  question  of  foreign  troops  in  China  which 
was  based  upon  no  treaty  right,  and  the  maintenance 
of  extraterritorial  jurisdiction  which  was  supported 
by  treaties  to  which  China  was  a  party.  He  feared 
that  the  sending  of  such  a  commission  would  tend  to 
aggravate  rather  than  to  relieve,  the  feeling  which  the 
Chinese  had  upon  the  subject. 

After  some  further  discussion  it  was  agreed  that 
the  whole  matter  should  be  referred  to  the  Drafting 
Committee. 

Chinese  Objection.  In  this  Committee,  consider- 
able discussion  was  had  as  to  the  agency  through 
which  an  inquiry  was  to  be  made  as  to  whether  condi- 
tions in  China  were  such  as  to  justify  the  continued 
stationing  of  foreign  troops  in  China.  That  respect 
for  China's  sovereignty  required  that  these  troops 
should  be  removed  as  soon  as  conditions  would  possi- 
bly justify  was  conceded  by  the  representatives  of  all 
the  Powers.  At  the  same  time  it  developed  that  the 
Chinese  Delegation  was  imwilling,  and  quite  properly 
so,  that,  without  the  consent  and  cooperation  of  the 
Chinese  Government,  the  foreign  Powers  should 
assume  and  exercise  the  function  of  making  an 
inquiry  into  China's  domestic  affairs.  At  the  fifth 
meeting  of  the  Committee  Dr.  Koo  made  the  follow- 
ing statement : 


FOREIGN  TROOPS  IN  CHINA  153 

Whatever  may  be  the  practice  of  nations  under  international  law 
as  to  the  sending  of  troops  into  a  foreign  state  for  the  protection  of 
their  nationals,  it  is  recognized  by  the  civilized  world  that  the  send- 
ing of  such  troops  is,  and  rightfully  can  be,  only  a  temporary  meas- 
ure in  order  to  meet  emergencies  that  threaten  imminent  danger  to 
the  lives  and  property  of  the  nationals  of  the  state  taking  such  action, 
and,  upon  the  passing  of  such  emergency,  the  troops  sent  should  be 
immediately  withdrawn.  It  is  furthermore  recognized  that  the 
obligation  to  make  such  withdrawal  should  not,  as  a  general  prin- 
ciple, be  made  dependent  upon  an  inquiry  into  the  domestic  condi- 
tions of  the  country  into  which  such  troops  are  sent,  but,  in  every 
case,  tlieir  retention  should  depend  upon  clearly  evident  conditions 
of  disorder  in  the  localities  where  such  troops  are  stationed  such  as 
to  make  demonstrable  the  inability  or  indisposition  of  the  local  terri- 
torial sovereignty  to  afford  adequate  protection  to  the  lives  and 
property  of  the  nationals  of  the  State  sending  troops. 

Resolution  Adopted.  The  following  resolution, 
adopted  by  the  Drafting  Committee  on  January  3, 
was  reported  to  the  Committee  of  the  Whole  at  its 
seventeenth  session,  held  January  5 : 

Whereas  the  powers  have  from  time  to  time  stationed  armed 
forces,  including  police,  in  China  to  protect  the  lives  and  property  of 
foreigners  lawfully  in  China; 

And  whereas  it  appears  that  certain  of  these  armed  forces  are 
maintained  in  China  without  the  authority  of  any  treaty  or  agree- 
ment; 

And  whereas  the  powers  have  declared  their  intention  to  withdraw 
their  armed  forces  now  on  duty  in  China  without  the  authority  of 
any  treaty  or  agreement,  whenever  China  shall  assure  the  protec- 
tion of  the  lives  and  property  of  foreigners  in  China; 

And  whereas  China  has  declared  her  intention  and  capacity  to 
assure  the  protection  of  the  lives  and  property  of  foreigners  in 
China; 

Now  to  the  end  that  there  may  be  a  clear  understanding  of  the 
conditions  upon  which  in  each  case  tlie  practical  execution  of  those 
intentions  must  depend ; 


164  CHINA  AT  THE  CONFERENCE 

It  is  resolved  that  the  diplomatic  representatives  in  Peking  of 
the  powers  now  in  conference  at  Washington,  to  wit:  the  United 
States  of  America,  Belgium,  the  British  Empire,  France,  Italy, 
Japan,  the  Netherlands,  and  Portugal,  will  be  instructed  by  their 
respective  Governments,  whenever  China  shall  so  request,  to  asso- 
ciate themselves  with  three  representatives  of  the  Chinese  Govern- 
ment to  conduct  collectively  a  full  and  impartial  inquiry  into  the 
issues  raised  by  the  foregoing  declarations  of  intention  made  by  the 
powers  and  by  China  and  shall  thereafter  prepare  a  full  and  com- 
prehensive report  setting  out  without  reservation  their  findings  of 
fact  and  their  opinions  with  regard  to  the  matter  hereby  referred  for 
inquiry,  and  shall  furnish  a  copy  of  their  report  to  each  of  the  nine 
Governments  concerned  which  shall  severally  make  public  the  report 
with  such  comment  as  each  may  deem  appropriate.  The  representa- 
tives of  any  of  the  powers  may  make  or  join  in  minority  reports 
stating  their  differences,  if  any,  from  the  majority  report. 

That  each  of  the  powers  above  named  shall  be  deemed  free  to 
accept  or  reject  all  or  any  of  the  findings  of  fact  or  opinions  ex- 
pressed in  the  report,  but  that  in  no  case  shall  any  of  the  said 
powers  make  its  acceptance  of  all  or  any  of  the  findings  of  fact  or 
opinions  either  directly  or  indirectly  dependent  on  the  granting  by 
China  of  any  special  concession,  favor,  benefit,  or  immunity,  whether 
political  or  economic. 

Chinese  Statement.  Mr.  Sze  at  this  time,  in  behalf 
of  the  Chinese  Delegation,  made  the  following  state- 
ment which  was  later  repeated  in  the  fifth  plenary 
session  of  the  Conference : 

The  Chinese  Delegation  takes  note  of  the  Resolution  with  regard 
to  the  withdrawal  of  foreign  troops  from  China  and  expresses  its 
appreciation  of  the  offer  of  the  eight  Powers  approving  this  Resolu- 
tion to  instruct  their  respective  diplomatic  representatives  at  Peking 
to  associate  themselves  with  representatives  of  the  Chinese  Govern- 
ment, when  that  Government  shall  so  request,  in  order  to  conduct 
collectively  a  full  and  impartial  inquiry  as  to  the  necessity  for  con- 
tinuing to  maintain  foreign  armed  forces  in  China,    The  Chinese 


FOREIGN  TROOPS  IN  CHINA  155 

Delegation  will  assume,  unless  now  notified  to  the  contrary,  that, 
should  their  Government  at  any  future  time  desire  to  avail  itself 
of  the  foregoing  offer  inquiries  and  resulting  recommendations  may 
be  asked  for  with  reference  to  the  presence  of  foreign  armed  forces 
at  particular  places  or  in  particular  localities  in  China. 

The  Chinese  Delegation  desires  further  to  say  with  reference  to 
the  general  matter  of  maintaining  armed  forces  by  a  nation  or 
nations  within  the  borders  of  other  states  which  have  not  given  their 
express  consent  thereto,  that  it  is  its  understanding  that,  according 
to  accepted  principles  of  international  law,  the  sending  or  stationing 
of  such  forces  can  rightfully  be  only  a  temporary  measure  in  order 
to  meet  emergencies  that  threaten  imminent  danger  to  the  lives 
and  property  of  the  nationals  of  the  States  taking  such  action,  and 
that,  upon  the  passing  of  such  emergency,  the  forces  sent  should  be 
immediately  withdrawn.  It  is  also  the  understanding  of  the  Chinese 
Delegation  that  the  obligation  to  make  such  withdrawal  cannot,  as 
a  general  principle,  be  rightfully  postponed  until  the  Government 
of  the  State  where  they  are  located  has  consented  to  an  inquiry  by 
the  representatives  of  other  Powers  into  its  own  domestic  conditions 
as  regards  the  maintenance  of  law  and  order,  and  a  report  has  been 
made  declaring  that  there  is  no  necessity  for  the  presence  of  such 
foreign  armed  force.  In  other  words,  it  is  the  understanding  of  tbe 
Chinese  Delegation  that  accepted  international  law  recognizes  the 
basic  right  of  every  sovereign  state  to  refuse  its  consent  to  the 
sending  into  or  the  stationing  within  its  borders  of  armed  forces, 
and  that  while  it  may,  by  the  exercise  of  its  own  will,  consent  that  an 
inquiry  shall  be  made  as  to  the  necessity  in  fact  of  the  continuance 
within  its  borders  of  such  foreign  armed  forces  as  may  be  therein, 
such  action  upon  its  part,  or  a  Resolution  by  other  Powers  offering 
their  cooperation  in  such  an  inquiry,  is  not  to  be  deemed  in  deroga- 
tion or  limitation  of  the  inherent  right  of  a  sovereign  state  to 
refuse  entrance  to,  or  further  continuance  within  its  borders,  of 
foreign  armed  forces. 

Mr.  Sze  asked  whether  "  railway  guards  *'  were 
included  within  the  armed  forces  referred  to  in  the 
resolution.    Mr.  Root  said  that  they  should  be  in- 


156  CHINA  AT  THE  CONFERENCE 

eluded  and  therefore  asked  that  the  first  paragraph  of 
the  resolution  be  amended  by  inserting  the  words 
**  and  railway  guards  ^*  after  the  words  **  including 
police."  As  to  this,  he  said  **  it  was  not  a  matter  of 
terms.  It  was  not  a  question  of  the  name  that  hap- 
pened to  be  given  to  the  person  who  was  employed 
in  a  public  capacity  with  arms  to  preserve  order.  He 
might  be  caUed  a  policeman,  or  he  might  be  called  a 
guard,  or  what  not." 

These  amendments  were  accepted,  and,  as  thus 
amended,  the  resolution  was  unanimously  adopted 
(China  not  voting)  by  the  Committee,  and,  later 
approved  by  the  Conference  in  its  fifth  plenary 
session,  held  February  1,  1922. 


CHAPTER  XII 

Wireless  and  Other  Electrical  Communications 
Installations  in  China 


The  matter  of  the  existence  of  radio  stations  upon 
China's  soil  without  the  consent  of  her  Government 
became  connected  with  the  general  topic  of  **  Electri- 
cal Communications  "  that  appeared  upon  the 
Agenda  of  the  Conference  for  the  consideration  of 
Pacific  and  Far  Eastern  Questions,  and  gave  rise  to 
considerable  discussion  which  finally  led  to  no  very 
definite  results. 

Chinese  Statement.  In  the  Committee  of  the 
Whole,  Mr.  Sze  asked  that  the  Conference  should 
take  action  that  would  lead  to  the  immediate  abolition 
or  surrender  to  the  Chinese  Government  of  all  electri- 
cal means  of  communication,  including  wireless  sta- 
tions, maintained  on  Chinese  soil  without  the  consent 
of  the  Chinese  Government,  and  submitted  tentative 
lists  of  them.    In  this  statement  he  said : 

All  of  the  arguments  that  have  been  presented  in  favor  of  the 
immediate  abolition  of  foreign  postal  stations  apply  with  equal  force 
to  the  abolition  or  surrender  to  the  Chinese  Government  of  these 
foreign  electrical  means  of  communication.  Just  as  China  has 
built  up  a  highly  efficient  postal  system  capable  of  transporting  with 
speed  and  safety  written  communications  between  China  and  foreign 
countries  and  between  important  points  within  China  so  she  has 
developed  a  system  of  telegraph  stations  adequate  for  the  transmis- 

157 


168  CHINA  AT  THE  CONFEEENCE 

sion  of  communications  by  wire,  or  between  different  parts  of  China, 
and  has  entered  into  contracts  for  the  installation  of  high  powered 
wireless  apparatus  which  will  put  her  into  communication  with 
other  countries.  She  already  has  a  number  of  lower-powered  wire- 
less stations  for  wireless  communication  between  points  within 
China.  There  is  thus  no  need  for  the  maintenance  in  China  by  other 
countries  of  wire  or  wireless  installations.  Their  operation  not  only 
seriously  interferes  with  the  continued  development  of  the  Chinese 
system  by  diverting  from  it  business  properly  belonging  to  it  but 
represents  an  indefensible  infringement  of  China's  territorial  and 
administrative  integrity.  To  the  foreign  powers  maintaining  them 
they  can  have  no  significance  except  as  they  may  seem  to  serve  their 
purely  political  aims.  Since  these  powers  have  now  affirmed  their 
intention  of  doing  nothing  that  will  infringe  upon  the  political, 
territorial,  or  administrative  integrity  of  China,  it  is  to  be  expected 
that  they  will  discontinue  the  maintenance  of  the  stations  to  which 
China  has  not  given  her  consent. 

Since  certain  of  these  stations  represent  the  investment  of  con- 
siderable sums  of  money,  China,  though  recognizing  no  legal  obliga- 
tion to  do  so,  is  willing  to  pay  to  the  foreign  governments  owning 
them  the  fair  value  of  such  stations  as  are  of  such  a  character  or  are 
so  located  that  they  can  be  made  effective  parts  of  her  own  systems  of 
electrical  communications. 

In  the  discussion  which  followed  Secretary  Hughes 
called  attention  to  the  stations  maintained  under  the 
Boxer  Protocol  of  1901:  Mr.  Balfour  said  that  he 
understood  that  the  British  Government  had  in  China 
only  one  wireless  station,  namely,  that  at  Kashgar,  in 
Turkestan,  which  had  been  erected  during  the  war  for 
the  purpose  of  obtaining  information  in  regard  to  the 
Bolshevists :  M.  Viviani  raised,  rather  unnecessarily, 
the  question  as  to  the  control  of  wave  lengths  which 
different  stations  should  be  permitted  to  use,  and  sug- 
gested the  organization  of  a  committee  to  investigate 
the  technical  sides  of  wireless  telegraphy.     It  was 


WIEELESS*  159 

then  decided  to  refer  the  whole  matter  to  the  Drafting 
Committee. 

Draft  Resolution  by  Mr.  Root.  At  the  first  meeting 
of  this  committee  its  Chairman,  Mr.  Root,  submitted 
the  following  resolution: 

Aobeed:  1.  That  all  radio-stations  in  China  maintained  under 
the  provisions  of  the  protocol  of  September  7,  1901,  fur  the  settle- 
ment of  the  disturbances  of  the  year  1900  or  in  the  grounds  of  any 
of  the  foreign  legations  in  China  shall  be  limited  in  their  use  to 
sending  and  receiving  government  messages  and  shall  not  receive  or 
send  commercial  or  personal  and  unofficial  messages ;  Provided,  how- 
ever, that  in  case  all  other  telegraphic  communication  is  interrupted 
then,  upon  official  notification  accompanied  by  proof  of  such  inter- 
ruption to  the  Chinese  Ministry  of  Posts  and  Communications,  such 
stations  may  afford  temporary  facilities  for  commercial  and  personal 
messages  until  the  Chinese  Government  has  given  notice  of  the 
termination  of  the  interruption. 

2.  All  radio-stations  operated  within  the  territory  of  China  by 
foreign  governments  or  their  citizens  under  treaties  or  concessions 
of  the  Government  of  China,  are  to  limit  the  messages  sent  and  re- 
ceived by  the  terms  of  the  treaties  or  concessions  under  which  the 
respective  stations  are  maintained. 

3.  In  case  there  be  any  radio-station  maintained  in  the  territory 
of  China  by  a  foreign  government  or  citizens  or  subjects  thereof 
without  the  authority  of  the  Chinese  Government,  such  station  and 
all  the  plant  apparatus  and  material  thereof  shall  be  transferred  to 
and  taken  over  by  the  Government  of  China,  to  be  operated  under 
the  Chinese  Ministry  of  Posts  and  Communications,  upon  fair  and 
full  compensation  to  the  owners  for  the  value  of  the  installation,  as 
soon  as  the  Chinese  Ministry  of  Posts  and  Communications  is  pre- 
pared to  operate  the  same  effectively  for  the  general  public  benefit. 

4.  The  owners  or  managers  of  all  radio-stations  maintained  in 
the  territory  of  China  by  foreign  Powers  or  citizens  or  subjects 
thereof  are  to  confer  with  the  Chinese  Ministry  of  Posts  and  Com- 
munications for  the  purpose  of  seeking  a  common  arrangement  to 


160  CHINA  AT  THE  CONFERENCE 

avoid  interef  erence  in  the  use  of  wave  lengths  by  wireless  stations  in 
China,  subject  to  such  general  arrangements  as  may  be  made  by  a 
general  international  conference  for  the  revision  of  the  rules  estab- 
lished by  the  International  Radio  Telegraph  Convention  signed  at 
London,  July  5, 1912. 

Discussion.  With  reference  to  this  draft  resolu- 
tion, the  French  representative  said  that  France  had 
established  a  radio-station  in  the  French  Concession 
in  Shanghai  and  one  in  the  leased  territory  of 
Kwangchow-wan.  These  stations,  he  said,  France 
had  the  right  to  establish  by  virtue  of  its  concessional 
rights  at  Shanghai  and  as  lessee  of  Kwangchow-wan, 
and  therefore,  they  should  be  excluded  from  the 
operation  of  the  Resolution.  The  British  representa- 
tive said  that  the  radio  station  in  the  Kowloon  leased 
area  should  receive  separate  consideration,  and  the 
one  at  Kashgar  was  there  with  China's  consent.*   The 

'  In  a  letter  from  the  British  Empire  Delegation,  dated  December  28, 
1921,  to  the  Chinese  Delegation  the  following  statement  was  made  regarding 
the  British  radio  station  at  Kashgar:  "During  the  summer  of  1918,  the 
position  in  Hsinkiang  gave  rise  to  anxiety  owing  to  the  activities  of  Bolshe- 
viks, and  especially  to  the  fact  that  enemy  prisoners  of  war  were  being 
armed  by  the  Russians  and  sent  as  garrison  troops  to  the  Russian  Pamirs. 
Great  Britain  notified  China  of  her  wish  to  send  some  intelligence  oflBcers 
into  Hsinkiang,  and  a  guard  of  some  30  men  to  the  Consulate-General  at 
Kashgar.  On  August  19,  1918,  the  Chinese  Government  replied  that  they 
had  telegraphed  instructions  to  the  Governor  of  Hsinkiang  pointing  out  that 
Great  Britain  and  China  stood  together  as  Allies  and  it  was  the  duty  of 
each  to  render  assistance  to  the  other  when  occasions  arose,  and  that  the 
guard  should  therefore  be  allowed  to  enter  Hsinkiang  for  the  purpose 
of  guarding  the  Consulate. 

"On  October  26,  1918,  Sir  J.  Jordan,  then  His  Majesty's  Minister  at 
Peking,  wrote  to  the  Wai  Chiao  Pu  stating  that  the  operations  of  our 
mtelligence  officers  in  Hsinkiang  had  been  greatly  hampered  by  the  diffi- 
culty of  communicating  with  the  British  authorities  in  India.  It  was 
accordingly  proposed  to  send  to  Kashgar  a  small  wireless  telegraphy  re- 
ceiving set  which  would  enable  the  Consulate  to  receive  messages  trans- 


WIKELESS  161 

Japanese  representative  contended  that  the  Japanese 
radio  stations  in  the  South  Manchuria  Railway  zones 
were  there  by  treaty  right,  that  is,  as  ancillary  to 
Japan 's  rights  of  railway  control  and  operation.  The 
station  at  Hankow,  he  said,  would  be  withdrawn 
when  the  Japanese  troops  were  withdrawn  from  that 
place  and  would  be  used  only  for  military  purposes ; 
the  stations  at  Tsingtao  and  Tsinan  would  be  disposed 
of  simultaneously  with  the  settlement  of  the  Shan- 
tung question. 

In  the  Drafting  Committee.  Dr.  Koo,  in  behalf  of 
the  Chinese  Delegation,  denied  that  the  right  to  estab- 
lish radio  stations  in  the  leased  areas  was  included 
within  the  rights  granted  by  China  to  the  lessee  states. 
He  took  the  same  position  as  to  the  maintenance  of 
radio  stations,  without  China's  consent,  in  municipal 
"  settlements  "  or  '*  concessions  "  and  within  railway 
zones.  The  British  representative  agreed  with  Dr. 
Koo  that  the  rights  which  foreign  powers  have  in 
municipal  concessions  or  settlements  in  China  do  not 

mitted  from  India.  Owing  to  the  difficult  nature  of  the  frontier  roads,  it 
haa  been  found  impossible  to  send  a  transmitter  set,  and  messages  from 
Kashgar  would  have  to  be  sent  as  before  by  post  or  by  the  Chinese  land 
lines,  until  the  new  Marconi  installation  at  Kashgar  should  be  set  up. 
His  Majesty's  Government  offered  to  use  the  Kashgar  receiving  installation 
for  Chinese  official  messages,  should  the  Chinese  Government  so  desire ;  and 
they  undertook  to  remove  the  installation  so  soon  as  the  Chinese  Govern- 
ment's own  wireless  station  had  been  erected. 

"On  November  7,  1918,  Sir  John  Jordan  telegraphed  that  the  Chinese 
government  had  sent  instructions  to  the  Governor  of  Hsinkiang  that  the 
party  in  charge  of  the  wireless  installation  were  to  be  admitted. 

"  From  the  above  I  think  you  will  agree  that  it  is  evident  that  the  wire- 
less receiving  set  at  his  Majesty's  Consulate-General  at  Kashgar  is  there 
with  the  concurrence  of  the  Chinese  Government." 
IS 


162  CHINA  AT  THE  CONFERENCE 

include,  without  specific  consent  of  China,  the  rights 
of  erecting  and  operating  radio  stations. 

After  some  further  discussion,  Dr.  Koo  said  that 
he  understood  the  position  of  the  French  Delegation 
to  be  that  a  **  concession  '^  did  not,  as  a  matter  of 
principle,  carry  with  it  the  right  to  install  a  radio 
station,  but  that  there  was,  in  fact,  such  a  station  in 
the  French  settlement  at  Shanghai,  and  that  its  con- 
tinuance there  would  be  a  matter  for  discussion  be- 
tween the  French  and  Chinese  Governments. 

The  Japanese  representative  said  that  the  Japanese 
wireless  station  at  Hankow  was  in  the  Japanese  gar- 
rison there  and  was  needed  for  military  purposes; 
also  that  the  stations  within  the  railway  zones  were 
for  the  use  of  the  railway  guards.  Dr.  Koo  again 
afl&rmed  that,  in  the  railway  zones,  Japan  had  by 
treaty  only  ordinary  business  administrative  rights 
for  the  operation  of  the  railway,  and  that  while  Japan 
might  have  the  right  to  erect  and  operate  such  tele- 
graph lines  as  might  be  required  for  the  working  of 
the  railway,  this  did  not  carry  with  it  the  right  to 
erect  and  operate  radio  stations.  As  to  wireless  sta- 
tions, without  China's  consent  in  leased  areas,  he 
would  make  a  reservation  in  behalf  of  his  Govern- 
ment. 

Resolution  of  December  7.  As  finally  agreed  to  by 
the  Drafting  Committee  and  reported  to,  and  adopted 
by  the  Committee  of  the  Whole,  at  its  thirteenth 
meeting,  held  December  7,  the  resolution  ran  as 
follows : 

1.  That  all  radio-stations  in  China,  whether  maintained  nnder 
the  provisions  of  the  international  protocol  of  September  7,  1901, 


WIEELESS  163 

or  in  fact  maintained  in  the  grounds  of  any  of  the  foreign  Lega- 
tions in  China,  shall  be  limited  in  their  use  to  sending  and  receiv- 
ing government  messages  and  shall  not  receive  or  send  commercial 
or  personal  or  unofficial  messages,  including  press  matter:  Pro- 
vided, however,  that  in  case  all  other  telegraphic  communication  is 
interrupted  then,  upon  official  notification  accompanied  by  proof  of 
such  interruption  to  the  Chinese  Ministry  of  Posts  and  Communi- 
cations, such  stations  may  afford  temporary  facilities  for  com- 
mercial and  personal  messages  until  the  Chinese  Government  htis 
given  notice  of  the  termination  of  the  interruption. 

2.  All  radio-stations  operated  within  the  territory  of  China  by 
foreign  governments  or  their  citizens  under  treaties  or  concessions 
of  the  Government  of  China,  shall  limit  the  messages  sent  and  re- 
ceived by  the  terms  of  the  treaties  or  concessions  under  which  the 
respective  stations  are  maintained. 

3.  In  case  there  be  any  radio-station  maintained  in  the  territory 
of  China  by  a  foreign  government  or  citizens  or  subjects  thereof 
without  the  authority  of  the  Chinese  Government,  such  station  and 
all  the  plant,  apparatus  and  material  thereof  shall  be  transferred 
to  and  taken  over  by  the  Government  of  China,  to  be  operated 
under  the  direction  of  the  Chinese  Ministry  of  Posts  and  Com- 
munications, upon  fair  and  full  compensation  to  the  owners  for  the 
value  of  the  installation,  so  soon  as  the  Chinese  Ministry  of  Posts 
and  Communications  is  prepared  to  operate  the  same  effectively  for 
the  general  public  benefit. 

4.  If  any  question  shall  arise  as  to  radio-stations  in  the  leased 
territories,  South  Manchurian  railway  zones,  and  the  French  Con- 
cession in  Shanghai,  it  is  agreed  that  these  shall  be  matters  for  dis- 
cussion between  the  Chinese  Government  and  the  Governments  con- 
cerned. 

6.  The  owners  or  managers  of  all  rado-stations  maintained  in  the 
territory  of  China  by  foreign  powers  or  citizens  or  subjects  thereof 
shall  confer  with  the  Chinese  Ministry  of  Posts  and  Communica- 
tions for  the  purpose  of  seeking  a  common  arrangement  to  avoid 
interference  in  the  use  of  wave-lengths  by  wireless  stations  in  China, 
subject  to  such  general  arrangements  as  may  be  made  by  a  general 
international  conference  for  the  revision  of  the  rules  established  by 


164  CHINA  AT  THE  CONFERENCE 

the  International  Radio  Telegraph  Convention  signed  at  London, 
July  6,  1912. 

Viviani  Resolution.  At  the  fifteenth  meeting  of  the 
Committee  of  the  Whole,  held  December  12,  a  draft 
of  a  motion  (dated  December  7)  was  submitted  by 
M.  Viviani  which  was  as  follows : 

Whereas  competition  in  the  establishment  and  operation  of  wire- 
less stations  in  China,  far  from  bringing  about  the  creation  of  the 
necessary  radio  communications  between  China  and  the  other  coun- 
tries, has  on  the  contrary,  produced  results  the  reverse  of  those 
aimed  at,  the  powers  represented  at  the  Washington  conference  con- 
sider that  this  competition  should  give  way  to  co-operation  under 
the  control  of  the  Government  of  China. 

Therefore,  it  is  decided  that  a  committee  shall  be  formed,  includ- 
ing representatives  of  the  interested  countries  and  of  China,  to  draw 
up  practical  recommendations  in  accordance  with  which  this  co- 
operation shall  be  accomplished  in  conformity  with  the  following 
principles : 

( 1 )  The  purpose  of  the  co-operation  should  not  be  to  favor  certain 
interest  at  the  expense  of  others  but  to  enable  China  to  obtain  radio 
communications  established  and  operated  as  much  in  its  own  in- 
terests as  in  that  of  the  public  of  all  countries  and  to  avoid  the  waste 
of  capital,  of  staff,  of  material,  and  of  wave  lengths. 

(2)  To  this  end  China  should  be  enabled  to  possess,  as  soon  as 
possible,  radio  stations  with  all  the  latest  technical  improvements 
that  can  be  contributed  by  the  various  companies  of  the  countries 
which  are  concerned  in  the  improvement  of  radio  communications 
with  China. 

(3)  Radio  communications  within  the  Chinese  territory  shall  be 
subject  to  the  Chinese  laws  and  the  external  radio  communications 
(between  China  and  other  countries)  shall  be  regulated  by  the 
international  conventions  governing  such  matters. 

(4)  The  Governments  of  the  powers  mentioned  in  the  preamble 
shall  give  no  support  to  any  company  or  any  person  who  does  not 
conform  to  the  above  principles  as  well  as  to  the  practical  rules  pre- 
scribed in  accordance  with  the  recommendations  of  the  committee. 


WIRELESS'  165 

SUPPLBMENTAHY  SUGGESTION' 

(5)  The  rates  charged  for  radio  communications  shall  never  be 
higher  than  the  rates  for  communications  by  wire  or  by  cable  for 
equivalent  distances,  and  Government  and  press  messages  shall 
benefit  by  a  reduction  of  at  least  50  per  cent. 

In  explanation  of  this  motion,  Mr.  Viviani  said  that 
its  aim  was  to  save  China  from  being  invaded  by  a 
swarm  of  little  competing  radio  companies  by 
strengthening  the  present  companies  and  enabling 
them  to  render  efficient  service.  Its  aim  was  not, 
however,  to  establish  a  monopoly  in  China  upon  the 
part  of  the  existing  companies. 

Mr.  Balfour  thought  that  it  was  proper  that  the 
Conference  should  seek  to  bring  present  and  future 
radio  concessions  in  China  into  harmony  with  one 
another  and  without  infringement  of  China's  sover- 
eignty, and  that  Mr.  Viviani 's  proposals  might  be 
taken  as  a  starting  point  for  that  purpose.  He  was 
inclined  to  the  opinion  that  future  radio  rights  in 
China  should  be  arranged  upon  the  consortium 
principle. 

No  action  upon  Mr.  Viviani 's  proposals  was  taken 
at  that  time  but  the  matter  postponed  so  that  the  Dele- 
gations could  have  opportunity  to  consult  their 
experts  upon  it.  The  matter  of  radio  stations  in 
China  was  not  again  brought  up  for  discussion  until 
the  twenty-fifth  meeting  of  the  Committee  of  the 
Whole,  held  January  24,  1922.  At  that  meeting  Mr. 
Root  said  that  while  he  was,  upon  the  whole,  in  agree- 
ment with  the  purposes  of  the  motion  of  Mr.  Viviani, 
the  matter  was  "  a  grave  question  of  policy  which 
primarily  and  fundamentally  should  be  determined 


166  CHINA  AT  THE  CONFERENCE 

by  the  Government  of  China The  question  lay 

between  building  up  an  electrical  wireless  system  in 
China  upon  the  principle  of  free  competition,  or 
building  it  up  upon  the  principle  of  co-operation  or 

consortium One  method,  that  of  competition, 

was  the  method  that  existed  in  the  United  States  to- 
day ;  another  method,  that  of  controlled  cooperation, 
was  the  method  that  existed  in  many  other  countries. 
China  ought  to  determine  which  she  would  follow; 
then  the  powers  represented  ought  to  help  her  in  that 
course,  but  he  did  not  think  that  the  committee  was  in 
a  position  to  decide  now.  With  that  end  in  view  he 
had  prepared  for  submission  to  the  Drafting  Sub- 
Committee  a  resolution  which  corresponded  to  Mr. 
Viviani's  motion  for  the  appointment  of  a  committee 
or  commission,  but  which,  instead  of  undertaking  to 
decide  the  fundamental  question  of  policy  in  advance 
of  the  consideration  of  the  commission,  left  that  to 
be  one  of  the  things  to  be  determined  from  the  report 
of  the  conunission." 

Chinese  Statement.  At  the  twenty-sixth  meeting  of 
the  Committee  of  the  Whole,  held  January  25,  Mr. 
Sze,  in  behalf  of  the  Delegation,  made  the  following 
statement  with  reference  to  the  policy  of  the  Chinese 
Government  regarding  wireless  communication: 

I  hope  I  have  made  it  clear  on  a  previous  occasion  that  wireless 
stations  not  owned  and  operated  by  the  Chinese  Government,  at 
present  found  in  China,  should,  at  the  earliest  possible  moment,  by 
negotiation  with  owners,  be  handed  over  to  the  operation  and  con- 
.  trol  of  the  Chinese  Government.  To  state  it  clearly,  I  may  say  that 
the  continuance  of  such  radio  stations  under  foreign  operation  as 
now  exist  in  China,  without  its  express  consent,  is  only  a  matter  of 


WIRELESS  167 

sufferance  upon  the  part  of  China,  and  that  their  existence  and  con- 
tinuance can  be  legalized  only  when  the  foreign  nations  concerned 
have  obtained  from  the  Chinese  Government  its  formal  consent 
thereto. 

It  is  known  to  the  world  that  in  China  wire  telegraphy  is  a  Gov- 
ernment monopoly,  and  it  will  be  a  logical  development  to  this 
Government  monopoly  that  "the  Government  should  establish  and 
maintain  all  wireless  communications  within  the  territory  of  China 
as  a  Government  monopoly.  The  two  systems  of  communication 
must  cooperate,  and  in  order  that  this  cooperation  may  be  harmon- 
ious, and  efficient,  it  is  necessary  that  both  should  be  owned,  con- 
trolled and  operated  by  the  Government. 

The  nature  of  international  wireless  communication  makes  inter- 
national cooperation  highly  desirable.  This  cooperation  is  needed 
in  order  that  several  stations  of  different  nationality  may  not  inter- 
fere with  each  other's  wave  lengths,  and  that  unnecessary  high 
powered  stations  may  not  be  established,  or  at  improper  places,  and 
that  suitable  arrangements  may  be  made  for  the  distribution  by  wire 
telegraph  or  otherwise  within  the  individual  states  of  the  wireless 
messages  when  received.  Therefore,  this  important  subject  of  inter- 
national wireless  conununication  is  a  matter  which  should  be  the 
subject  of  discussion  looking  toward  cooperation  between  all  stations 
concerned.  While  I  do  not  pretend  to  be  an  expert  on  wireless  com- 
munications, it  seems  to  me  that  so  important  an  international  ques- 
tion should  be  dealt  with  as  a  whole,  and  not  by  taking  China  as  a 
single  unit  for  international  discussion.  As  this  Conference  has 
been  called — and  its  work  has  proved — for  the  purpose  of  assisting 
China  by  the  removal  of  existing  limitations  on  her  sovereign  rights, 
I  am  inclined  to  think  that  the  public  might  have  misapprehension 
should  any  such  commission  be  appointed  to  deal  with,  even  if  only 
to  discuss  and  report  on,  such  a  subject,  which  is  manifestly  China's 
own  and  sole  problem.  My  honored  friend.  Senator  Root,  has  truly 
remarked  that  it  is  a  "grave  question  of  policy,  which  primarily 
and  fundamentally  should  be  determined  by  the  Government  of 
China."  Senator  Root  also  remarked  yesterday  that  the  questions  of 
competition  or  controlled  cooperation  are  not  uniform  in  practice 
in  all  countries.    In  view  of  this  fact,  and  the  importance  of  the 


168  CHINA  AT  THE  CONFERENCE 

whole  subject  of  wireless  comnmnications,  China,  while  determining 
for  herself,  wishes  to  have  time  to  consider  carefully  the  practices  of 
other  countries,  before  deciding  for  herself  which  course  to  follow. 

The  Chinese  Government  will  be  glad  to  cooperate  with  other 
Powers  with  a  view  to  arriving  at  common  policies  applicable  to  all 
Governments  and  mutually  beneficial  to  all,  with  regard  to  radio 
communications  between  herself  and  those  Powers,  and,  for  this 
purpose,  to  participate  in  a  conference  or  other  joint  action  for  the 
determination  of  general  principles  and  methods  to  be  recommended 
to  all  the  Governments  concerned  whereby  this  general  matter  may 
be  mutually  regulated  in  a  manner  similar  to  that  by  which  inter- 
national postal  interests  are  harmonized  and  promoted.'^ 

Revised  Root  Resolution.  Following  this  statement 
by  Mr.  Sze,  Mr.  Root  submitted  a  revision  of  the 
resolutions  which  he  had  submitted  the  day  before, 
and  which  was  as  follows : 

The  United  States  of  America,  Belgium,  the  British  Empire, 
China,  France,  Italy,  Japan,  the  Netherlands,  and  Portugal,  desir- 
ing to  avoid  controversies  regarding  electrical  communication  facili- 
ties and  services  in  China,  and  between  China  and  other  countries, 
and  particularly  over  concessions  or  contracts  in  China  relating 
thereto,  and  desiring  to  promote  the  further  development  of  the 
internal  and  external  electrical  communication  facilities  and  services 
of  China,  and  taking  note  of  the  general  policy  of  the  Government 
of  China  to  own  and  operate  electrical  communication  services 
within  its  territory,  have  agreed : 

(1)  That  the  provisions  set  forth  in  the  resolution  concerning  the 
open  door  shall  apply  to  electrical  communications  in  China  and 
between  China  and  other  countries. 

(2)  That  in  any  case  where,  in  the  general  interest,  the  rescission 
of  an  existing  monopoly  or  preferential  privilege  in  respect  to 
electrical  communications  in  China,  or  between  China  and  other 
countries,  is  deemed  desirable,  the  powers  whose  interests  are  affected 

*Thi8  statement  was  again  read  in  the  fifth  plenary  session  of  the 
Conference. 


WIRELESS'  169 

stand  ready  to  use  their  good  offices,  if  requested  by  China,  to  bring 
about  such  rescission. 

(3)  That  no  radio  stations  shall  be  erected  or  operated  on  Chinese 
territory  without  the  authorization  of  the  Government  of  China, 
and,  as  to  any  existing  unauthorized  station,  the  right  of  the  Gov- 
ernment of  China  either  to  order  its  removal  or  to  take  it  over  upon 
payment  of  fair  and  reasonable  compensation  is  expressly  recognized. 

(4)  That  without  the  express  consent  of  the  Government  of  China 
no  additional  radio  stations  shall  be  erected  in  the  legation  quarter 
at  Peking,  in  settlements,  in  concessions,  in  leased  territories,  in 
railway  areas  or  in  other  special  areas ;  nor  shall  the  power  of  exist- 
ing stations  in  any  such  areas  be  increased;  nor  shall  such  stations 
carry  on  ordinary  commercial  working. 

(5)  That  such  radio  stations  as  are  authorized  by  the  Government 
of  China,  whether  by  treaty  or  concession,  shall  comply  with  the 
terms  of  such  authorization,  and  with  the  provisions  of  the  Inter- 
national Radio-Telegraph  Convention  or  any  modification  thereof, 
and,  where  the  stations  are  authorized  to  conduct  commercial  ser- 
vices, such  services  shall  be  available  on  like  terms  to  the  nationals 
of  every  country. 

(6)  That  any  power  or  the  nationals  of  any  power  operating  radio 
stations  in  the  territory  of  China,  or  in  the  special  areas  indicated 
heretofore,  shall  confer  with  the  Government  of  China  for  the  pur- 
pose of  seeking  a  common  understanding  with  a  view  to  avoiding 
interference,  subject  to  any  general  international  arrangement  which 
may  hereafter  be  agreed  to. 

(7)  That  the  electrical  communication  services  between  China 
and  other  countries  may  develop  in  a  proper  and  orderly  manner 
and  in  accord  with  the  policy  of  China,  the  powers  stand  ready  to 
exchange  views,  either  generally  or  severally,  as  occasion  may  arise. 

Discussion.  Senator  Underwood,  as  reported  in 
the  Minutes,  spoke  as  follows : 

First,  to  refer  to  what  he  had  said  the  other  day  about  China,  he 
had  come  to  this  conference  in  the  utmost  good  faith  to  try  to  help 
the  Chinese  people  establish  and  maintain  a  sovereign  govern- 
ment and  their  territorial  integrity,  and,  so  far  as  he  was  concerned, 


170  CHINA  AT  THE  CONFERENCE 

he  was  unwilling  to  take  any  step  that  did  not  recognize  that  prin- 
ciple of  the  future  sovereignty  and  integrity  of  China.  He  knew,  as 
they  all  did,  that  China  was  torn  to  pieces  at  the  present  time  by 
dissensions  at  home ;  but  every  country  represented  at  the  conference 
table,  at  some  time  in  its  history  had  met  a  like  fate.  The  same 
diflBculties  had  been  experienced  in  the  United  States,  and  because 
China  was  disturbed  by  internal  differences  at  the  present  time  was 
no  reason  to  believe  that,  within  the  next  decade,  she  would  not 
have  established  a  sound  parliamentary  government  that  would 
efficiently  represent  her  people  and  protect  the  rights  of  foreigners 
dwelling  within  her  territory.  To  help  establish  such  a  government 
was  undoubtedly  one  of  the  high  purposes  of  the  conference,  and  he 
thought  the  conference  should  hesitate  to  take  any  step  themselves 
that,  for  one  minute,  would  recognize  an  invasion  of  that  great  prin- 
ciple of  the  sovereignty  of  China. 

In  the  main  he  did  not  object  to  these  resolutions;  he  thought  they 
were  a  recital  of  what  had  been  done  before.  But,  as  he  understood 
the  position  of  the  radio  question  in  China,  China  had  made  certain 
concessions  in  reference  to  the  legations,  legation  rights  in  China, 
and  communication  between  Peking  and  the  sea.  That  had  already 
been  covered  by  the  resolution  that  had  already  been  passed.  Out- 
side of  that,  if  he  understood  it  rightly,  there  were  no  treaty  rights 
that  tied  the  hands  of  China  in  reference  to  radio  communications. 
She  had  made  some  concessions,  but  those  concessions,  as  a  sov- 
ereign Government,  were  like  a  concession  that  the  Government  of 
the  United  States  would  make,  or  that  of  Japan  would  make ;  it  was 
still  within  the  power  of  her  sovereignty,  because  it  had  not  been 
made  to  a  Government,  but  had  been  made  to  nationals  of  other 
countries,  who,  in  taking  it,  had  to  conform  to  the  laws  of  China 
properly  administered. 

His  main  objection  to  the  resolution  was  to  clause  5 :  "  That  such 
radio  stations  as  are  authorized  by  the  Government  of  China,  whether 
by  treaty  or  concession,  shall  comply  with  the  terms  of  such  authori- 
zation  "    So  far  so  good ;  but  the  clause  continued :".... 

and  with  the  provisions  of  the  International  Radio-Telegraph  Con- 
vention or  any  modification  thereof."  In  other  words,  if  China 
granted  the  right  to  nationals  of  the  Government  of  the  United 


WIEELESS'  171 

States  to  establish  a  radio  station  in  China,  that  radio  station  had  to 
first  comply  with  the  regulations  in  China  as  far  as  it  could;  but, 
in  addition  to  that,  China  had  to  recognize — and  China  became  a 
party  to  this,  if  she  entered  into  a  treaty — that  the  radio  station  had 
to  comply  with  the  International-Telegraph  Convention  or  any  modi- 
fication thereof ;  that  was  to  say,  any  modification  thereof  as  passed 
in  a  future  convention;  and  that  future  convention  might  adopt 
regulations  in  reference  to  radio  in  China  that  would  not  be  satis- 
factory to  the  Chinese  Government ;  and  yet,  in  such  a  case,  China 
was  to  surrender  her  sovereignty,  not  to  governments  or  representa- 
tives of  governments,  but,  in  reference  to  the  regulation  of  those 
radio  stations,  to  the  representatives  of  corporations  or  individuals 
who  controlled  the  International  Eadio-Telegraph  Conventions. 

He  did  not  think  the  committee  ought  to  ask  China  to  do  that. 
He  thought  it  might  not  be  a  serious  point ;  but,  from  his  viewpoint, 
it  was  asking  China  to  surrender  her  sovereignty  in  the  control  of 
this  question  to  nationals  or  committees  or  organizations  entirely 
outside  of  China ;  and  he  was  not  willing,  occupying  the  position  he 
did  in  reference  to  the  sovereignty  of  China,  and  with  his  desire  to 
see  it  established  and  maintained,  to  attempt  to  defend  a  proposition 
of  that  kind. 

Mr.  Root  suggested  that  he  thought  perhaps  Senator  Underwood's 
point  might  be  covered  by  inserting  (in  paragraph  5)  after  the  words 
"  with  the  provisions  of  the  International  Radio-Telegraph  Conven- 
tion or  any  modification  thereof  "  the  words  "  to  which  China  shall 
consent." 

The  chairman,  after  some  discussion,  said  that  if  there  was  no 
objection,  the  resolution  proposed  by  Mr.  Root  would  contain  the 
amendment  "  to  which  China  shall  consent,"  at  the  place  stated. 

Mr.  Sze  asked  whether  that  meant  that  China  would  be  obliged  to 
consent. 

The  chairman  replied  that  it  did  not;  that  the  phrase  simply  im- 
plied futurity.  He  thought  the  words  in  question  indicate  that  there 
was  no  intent  to  have  it  mandatory. 

An  extended  discussion  then  followed  and  addi- 
tional resolutions  were  offered  with  the  result  that 
the  subject  under  consideration  became  so  compli- 


172  CHINA  AT  THE  CONFERENCE 

cated  that  it  was  finally  decided  to  reconsider  the  reso- 
lutions of  December  7  and  again  to  refer  the  matter 
to  the  Committee  on  Drafting. 

Resolution  of  December  7  Finally  Approved.  That 
committee,  as  a  result  of  two  sessions  of  discussion, 
decided  to  report  back  to  the  Committee  of  the  Whole, 
without  alteration,  the  resolutions  originally  adopted 
by  the  Committee  of  the  Whole  on  December  7.  Mr. 
Sze  took  occasion  again  to  state  that  it  was  the  posi- 
tion of  the  Chinese  Government  that  radio  stations 
installed  in  the  special  regions  designated  in  the 
fourth  Article  of  the  resolutions  of  December  7,  were 
installed  and  maintained  only  on  sufferance  so  far  as 
China  was  concerned,  and  that  China  had  not  sur- 
rendered and  would  not  surrender  her  right  to 
demand  their  removal  or  transfer  to  herself.  The 
following  motion  was  put  to  a  vote  and  adopted : 

The  undersigned  powers  declare  that  nothing  in  paragraphs  3  and 
4  of  the  Resolution  of  7th  December,  1921,  is  to  be  deemed  to  be 
an  expression  of  opinion  by  the  Conference  as  to  whether  the  stations 
referred  to  therein  are  or  are  not  authorized  by  China. 

They  further  give  notice  that  the  result  of  any  discussion  arising 
under  paragraph  4  must,  if  it  is  not  to  be  subject  to  objection  by 
them,  conform  with  the  principle  of  the  open  door  or  equal  oppor- 
tunity approved  by  the  Conference. 

The  Committee  of  the  Whole  at  twenty-seventh 
meeting,  held  January  27,  upon  receiving  this  report 
accompanied  by  the  foregoing  declarations,  again 
adopted  the  Resolutions  which  had  been  approved  on 
December  7. 

Mr.  Sze  made  the  following  statement : 


WIRELESS"  173 

The  Chinese  Delegation  takes  this  occasion  formally  to  declare 
that  the  Chinese  Government  does  not  recognize  or  concede  the  right 
of  any  foreign  power  or  of  the  nationals  thereof  to  install  or  operate, 
without  its  express  consent,  radio  stations  in  legation  grounds,  settle- 
ments, concessions,  leased  territories,  railway  areas  or  other  similar 
areas. 

The  radio  resolution  was  reported  to  the  Confer- 
ence at  its  fifth  plenary  session,  held  February  1,  and 
unanimously  approved  without  discussion  or  amend- 
ment. 


CHAPTER  XIII 
Spheres  of  Interest 


Chinese  Statement.  In  a  statement  made  in  behalf 
of  the  Chinese  Delegation,  at  the  fifteenth  meeting  of 
the  Committee  of  the  Whole,  held  December  12,  Dr. 
Wang  said : 

The  phrase  "sphere  of  interest,"  or  "sphere  of  influence"  as 
it  is  sometimes  called,  is  a  more  or  less  vague  term  which  implies 
that  the  powers  making  such  claims  in  China  are  entitled  within 
their  respective  "  spheres  "  to  enjoy  reserved,  preferential,  exclusive, 
or  special  rights  and  privileges  of  trade,  investment  and  for  other 
purposes. 

Germany  was  the  first  to  claim  a  sphere  of  influence  or  of  interest 
in  its  crystallized  form  over  the  Province  of  Shantung;  later  the 
other  powers  made  similar  claims  over  other  portions  of  the  territory 
of  China. 

These  claims  are  either  based  on  agreements  between  the  powers 
themselves  to  which  China  is  not  a  party,  such  as  the  agreement 
of  September  2,  1898,  relative  to  railway  construction  concluded 
between  British  and  German  banking  groups  and  sanctioned  by 
their  respective  Governments,  or  based  on  treaties  or  agreements 
made  with  China  under  circumstances  precluding  the  free  exercise 
of  her  will,  such  as  the  convention  with  Germany  for  a  lease  of 
Kiaochow  of  March  6,  1898,  and  the  treaties  and  notes  of  May  25, 
1915,  made  with  Japan  in  consequence  of  the  latter's  21  demands 
on  China. 

A  tentative  list  of  the  various  treaties  relating  to  this  matter  and 
to  the  so-called  spheres  of  interest  of  the  various  powers  has  already 
been  circulated  for  your  information.  I  need  not,  therefore,  enter 
into  a  detailed  examination  of  them  at  present. 

174  / 


SPHERES  OF  INTEREST  176 

That  China  should  have  been  thus  divided  into  different  spheres 
of  interest  is  a  most  unfortunate  state  of  affairs.  In  the  first  place, 
these  spheres  of  interest  seriously  hamper  the  economic  development 
of  China.  The  powers  claiming  these  spheres  seem  to  take  the  view 
that  certain  portions  of  China's  territory  are  reserved  for  their  ex 
elusive  exploitation  without  regard  to  the  economic  needs  of  the 
Chinese  people.  There  have  been  instances  where  a  nation  is  un- 
willing or  unable  to  finance  a  particular  enterprise  and  yet  refuses 
to  allow  it  to  be  financed  or  carried  out  by  other  nations. 

In  the  second  place,  the  whole  system  is  contrary  to  the  policy  of 
equal  opportunity  for  the  commerce  and  industry  of  all  nations — a 
policy  which,  so  far  as  the  common  interests  of  the  powers  are  con- 
cerned, is  fair  and  equitable  and  which  has  been  adopted  by  this 
committee. 

A  further  objection  to  the  spheres  of  interest  is  that  there  has  been 
a  tendency,  under  cover  of  economic  claims,  to  further  political  ends, 
thus  threatening  the  political  integrity  of  China  and  giving  rise  to 
international  jealousy  or  friction. 

It  is  gratifying  to  know  that  the  United  States  and  Great  Britain 
have  placed  themselves  strongly  upon  record  as  opposed  to  the  con- 
tinuance of  spheres  of  interest  in  China.  At  the  last  meeting 
Mr.  Balfour  was  good  enough  to  say  that  a  sphere  of  interest  in 
China  is  a  thing  of  the  past. 

The  claims  by  the  powers  to  spheres  of  interest  have  given  rise 
to  much  misunderstandings  and  misgivings  on  the  part  of  the 
Chinese  people,  and  in  view  of  the  considerations  which  I  have  just 
advanced,  the  Chinese  delegation  asks  that  the  powers  represented 
in  this  Conference  disavow  all  claims  to  a  sphere  or  spheres  of  in- 
terest or  of  influence  or  any  special  interests  within  the  territory 
of  China. 

Status  of  Question.  The  way  for  this  formal  dis- 
avowal by  the  Powers  of  Spheres  of  Interest  in  China 
had  been  prepared  by  the  correspondence  between 
the  United  States,  Great  Britain  and  Japan  leading 
up  to  the  creation,  in  1920,  of  the  International  Bank- 


176  CHINA  AT  THE  CONFERENCE 

tng  Consortium,  as  well  as  by  certain  statements  that 
had  earlier  been  made  in  the  Conference  itself. 

That  one  of  the  primary  purposes  which  the  United 
States  and  Great  Britain  had  had  in  promoting  the 
establishment  of  the  Banking  Consortium  was  the 
abolition  of  claims  upon  the  part  of  the  Powers  to 
Spheres  of  Interest  in  China  is  certain.  Mr.  Lamont, 
the  spokesman  for  the  American  banking  interests, 
which  had  the  support  of  the  American  Government, 
in  his  Preliminary  Report  on  the  Consortium  had 
said:  ''  Certainly  if  the  principle  laid  down  for  its 
organization  is  carried  out  we  shall  see  no  more 
*  spheres  of  interest '  set  up  in  China."  In  its  Memo- 
randum of  August  11, 1919,  submitted  to  the  Japanese 
Government,  the  British  Government  said:  **  One  of 
the  fundamental  objects  of  the  American  proposals 
as  accepted  by  the  British,  Japanese  and  French 
Governments,  is  to  eliminate  claims  in  particular 
spheres  of  interest  and  to  throw  open  the  whole 
of  China  without  reserve  to  the  combined  activities 
of  an  International  Consortium.  This  object 
cannot  be  achieved  unless  all  the  parties  to  the 
scheme  agree  to  sacrifice  all  claim  to  enjoy  any 
industrial  preference  mthin  the  boundaries  of  every 
political  sphere  of  influence."  And  again,  in  its 
Memorandum  of  November  20,  1919,  the  British 
Government  declared  that  the  ''  fundamental  idea 
imderlying  the  creation  of  the  Consortium  "  is  **  to 
abolish  spheres  of  interest  and  throw  open  the  whole 
of  China  to  the  activities  of  an  international  financial 
combination."  The  American  correspondence  was 
equally  emphatic  upon  this  point. 


SPHERES  OF  INTEREST  177 

Statements  in  the  Conference.  In  the  fourteenth 
meeting  of  the  Committee  of  the  Whole  of  the  Wash- 
ington Conference,  Mr.  Balfour,  replying  to  a  state- 
ment by  Dr.  Koo  with  reference  to  Inter-Power 
Agreements  relating  to  China,  called  attention  to  the 
fact  that  one  of  the  most  important  passages  of  Dr. 
Koo's  speech  had  reference  to  spheres  of  influence, 
and  said : 

So  far  as  Great  Britain  is  concerned,  spheres  of  interest  are  things 
of  the  past.  The  British  Government  has  not  the  slightest  wish  to 
prolong  a  situation  which,  so  far  as  they  are  concerned,  has  been 
abandoned.  A  better  way  of  dealing  with  the  matter  is  to  make  clear 
what  had  already  been  impUcitly,  if  not  explicitly,  indicated,  namely, 
to  declare  that  no  one  wishes  to  perpetuate  either  the  system  of . 
spheres  of  interest  or  the  international  understandings  on  which 
they  depend.^ 

At  this  same  meeting  of  the  Committee,  Mr.  Root 
said  that  he  believed  that  Mr.  Balfour's  statement 
that  morning  had  created  a  new  situation  in  regard 
to  spheres  of  influence ;  it  was,  he  said  the  most  public 
open,  positive  declaration  that  had  come  to  his  notice ; 
he  recalled  correspondence  between  the  United  States 
and  Great  Britain  a  few  years  ago  when  Mr.  Balfour 
himself,  as  Minister  for  Foreign  Affairs,  had  taken 

*  In  the  discussioii  had  in  the  eighteenth  meeting  of  the  Committee  of  the 
Whole,  when  the  matter  of  the  Open  Door  was  under  consideration,  Mr. 
Balfour  said : 

"The  British  Empire  Delegation  understood  that  there  was  no  repre- 
sentative of  any  Power  around  the  table  who  thought  that  the  old  practice 
of  '  spheres  of  influence '  was  either  advocated  by  any  Government  or 
would  be  tolerable  to  this  Conference.  So  far  as  the  British  Government 
was  concerned,  they  had,  in  the  most  formal  manner,  publicly  announced 
that  they  regarded  this  practice  as  utterly  inappropriate  to  the  existing 
situation." 
13 


178  CHINA  AT  THE  CONFERENCE 

the  position  that  Great  Britain  could  not  give  up  cer- 
tain exclusive  rights,  confirmed  by  agreements  with 
China,  in  what  was  then  known  as  the  British  sphere, 
in  the  valley  of  the  Yangtze,  because  other  nations 
held  rights  to  their  spheres,  and  as  long  as  British 
subjects  were  excluded  from  them  Great  Britain 
could  not  surrender  her  own  rights;  that  stage  had 
now  been  passed,  and  an  endeavor  should  be  made  to 
define  and  make  clear  the  new  position. 

Mr.  Balfour  said  he  did  not  wish  to  discuss  then  the 
correspondence  of  1917,  to  which  Mr.  Root  had  re- 
ferred, as  it  was  of  very  little  immediate  relevancy 
to  the  question.  It  was,  however,  worth  while  for 
him  to  state,  in  order  that  it  might  appear  on  the 
records  of  the  committee,  that  on  October  31,  1921, 
the  parliamentary  undersecretary  of  the  foreign  office 
had  made  the  following  declaration  in  the  House  of 
Commons : 

The  policy  of  spheres  of  influence  in  China  has  been  superseded 
by  one  of  international  cooperation,  and  the  further  development  of 
this  policy  will  no  doubt  form  one  of  the  subjects  of  discussion  at 
Washington. 

Commenting  upon  the  statement  which  Dr.  Wang 
had  made  at  the  fifteenth  meeting  of  the  Committee, 
Mr.  Root  said  that,  as  he  imderstood  it,  China  asked 
to  be  released  from  the  effect  of  certain  restrictions 
and  stipulations  that  were  collateral  to  certain  grants 
or  negative  stipulations  (undertakings  given  to  par- 
ticular powers  not  to  alienate  or  lease  specific  portions 
of  her  territory). 

This,  it  is  to  be  observed,  was  not  exactly  what 
Dr.  Wang  had  asked  for.     However,  upon  being 


SPHERES  OF  INTEREST  179 

requested  to  do  so,  he  furnished  the  Committee  at  its 
sixteenth  meeting  a  list  of  so-called  "  restrictive 
stipulations,"  which  included  not  only  China's  non- 
alienation  agreements,  and  the  various  agreements 
that  had  been  entered  into  by  the  Powers  relating  to 
China  but  to  which  she  was  not  a  party,  but  also  the 
group  of  treaties  and  exchange  of  notes  of  May  25, 
1915,  that  had  resulted  from  the  Twenty-One  De- 
mands that  Japan,  in  that  year,  had  made  upon 
China. 

Resolution  Adopted.  No  formal  or  definitive  action 
was  taken  by  the  Committee  of  the  Whole  or  by  the 
Conference  in  plenary  session  with  reference  to  the 
various  restrictive  stipulations,  the  list  of  which  Dr. 
Wang  submitted.  However,  at  the  twenty-third 
meeting  of  the  Committee,  held  January  21,  a  resolu- 
tion was  unanimously  adopted  which  was  later 
approved  by  the  Conference  in  plenary  session  and 
embodied,  with  unimportant  verbal  changes,  as  Arti- 
cle IV,  in  the  final  Nine  Power  Treaty  Relating  to 
Principles  and  Policies  to  be  followed  in  Matters 
Concerning  China,  signed  February  6,  1922.  This 
Article  IV  reads: 

The  Contracting  Powers  agree  not  to  support  any  agreements  by 
their  respective  nationals  with  each  other  designed  to  create  Spheres 
of  Influence  or  to  provide  for  the  enjoyment  of  mutually  exclusive 
opportunities  in  designated  parts  of  Chinese  territory.* 

'Thia  resolution  originated  in  connection  with  the  matter  of  listing  by 
the  Powers  the  commitments  claimed  by  them  to  have  been  made  by 
China  to  them  or  to  their  nationals  and  will  again  be  referred  to  in  the 
chapter  dealing  with  that  subject. 


180  CHINA  AT  THE  CONFEEENCE 

It  will  be  observed  that  tMs  agreement  upon  the 
part  of  the  Powers  has  only  a  prospective  and  not  a 
retrospective  operation.  At  the  same  time,  when 
regard  is  had  to  the  other  declarations  made  by  the 
Powers  at  the  Conference  and  to  the  other  Principles 
and  Policies  to  which  they  have  committed  them- 
selves, especially  with  reference  to  the  Open  Door,  it 
may  fairly  be  said  that,  if  these  Policies  and  Princi- 
ples are  faithfully  followed,  there  will  be  little  oppor- 
tunity in  the  future  for  any  Power  to  claim,  within 
any  particular  region  of  China,  upon  the  basis  of  any 
agreements  it  already  has  with  that  country,  such 
preferential  or  exclusive  rights  as  will  amount  to  a 
claim,  within  that  region  of  what,  in  the  past,  has 
been  known  as  a  Sphere  of  Interest  or  of  Influence.' 


'Article  III,  paragraph  designated  (a)  of  the  Nine  Powers  Treaty  Re- 
lating to  Principles  and  Policies  to  be  Followed  in  Matters  Concerning 
China  provides  that  the  Power  will  not  seek  nor  support  their  nationals  in 
seeking  "any  arrangement  which  might  purport  to  establish  in  favor  of 
their  interests  any  general  superiority  of  rights  with  respect  to  commercial 
or  economic  development  in  any  designated  region  of  China." 


CHAPTER  XIV 

Leased  Aeeas 


That  China  should  desire  to  obtain  an  abandon- 
ment of  the  leases  held  by  certain  of  the  Powers  of 
important  portions  of  her  territory  was  but  a  natural 
result  of  her  general  effort  to  free  herself  from  the 
various  limitations  upon  her  sovereign  freedom  of 
action.  Relief  in  this  specific  matter  was  brought 
before  the  Conference  by  Dr.  Koo,  of  the  Chinese 
Delegation,  at  the  twelfth  meeting  of  the  Committee 
of  the  Whole,  held  December  3.  Dr.  Koo,  as  reported 
in  the  minutes  of  that  meeting,  made  the  following 
statement : 

The  existence  of  the  leased  territories  in  China  was  due  in  the 
original  instance  to  the  aggressions  of  Germany,  whose  forcible  occu- 
pation of  part  of  Shantung  Province  constrained  the  Chinese  Gov- 
ernment on  March  6,  1898,  to  grant  a  lease  for  99  years  of  the 
Bay  of  Kiaochow  in  the  Shantung  Province.  This  was  closely  fol- 
lowed, on  March  27, 1898,  by  a  demand  on  the  part  of  Russia  for  the 
lease  of  the  Liaotung  Peninsula,  in  which  are  found  the  ports  of 
Port  Arthur  and  Dalny,  along  with  the  demand  for  the  right  of 
building  a  railway  to  be  guarded  by  Russian  soldiers  traversing  the 
Manchurian  Provinces  from  Port  Arthur  and  Dalny  to  join  the 
Trans-Siberian  Railway  and  Vladivostok.  This  was  later  the  cause 
of  the  Russo-Japanese  war  which  resulted  in  1905  in  the  transfer  of 
those  territories  to  Japan  with  the  consent  of  China.  Following  the 
lease  of  Kiaochow  Bay  to  Germany  and  that  of  Port  Arthur  and 
Dalny  to  Russia,  France  obtained  from  China  on  April  22,  1898, 
the  lease  of  Kwangchow-wan  on  the  coast  of  Kwangtung  Province 
for  99  years.    Great  Britain  on  June  9,  1898,  secured  the  lease,  also 

181 


18a  CHINA  AT  THE  CONFERENCE 

for  99  years,  of  an  extension  of  Kowloon  and  the  adjoining  territory 
and  waters  close  to  Hongkong,  and  on  July  1, 1898,  the  lease  "  for  so 
long  a  period  as  Port  Arthur  should  remain  in  the  occupation  of 
Russia  "  of  the  Port  of  Weihaiwei  on  the  coast  of  Shantung.  Both 
Great  Britain  and  France  based  their  claims  for  the  leases  on  the 
ground  of  the  necessity  of  preserving  the  balance  of  power  in  the 
Far  East. 

While  the  measures  and  extent  of  control  by  the  lessee  powers  over 
the  leased  territories  varied  in  different  cases,  the  leases  themselves 
were  all  limited  to  a  fixed  period  of  years.  Expressly  or  impliedly 
they  were  not  transferable  to  a  third  power  without  the  consent  of 
China.  Though  the  exercise  of  administrative  rights  over  the  terri- 
tories leased  was  relinquished  by  China  to  the  lessee  power  during 
the  period  of  the  lease,  the  sovereignty  of  China  over  them  had  been 
reserved  in  all  cases.  The  leases  were  all  creatures  of  compact, 
different  from  cessions  both  in  fact  and  in  law.  As  stated  in  the 
beginning,  these  leaseholds  were  granted  by  China  with  the  sole 
purpose  of  maintaining  the  balance  of  power  in  the  Far  East,  not 
so  much  between  China  and  the  other  powers,  but  between  other 
powers  themselves  concerning  China. 

Twenty  years  had  elapsed  since  then  and  conditions  had  entirely 
altered.  With  the  elimination  of  German  menace  in  particular,  an 
important  disturbing  factor  to  the  peace  of  the  Far  East  had  been 
removed.  Russia  had  equally  disappeared  from  the  scene  and  it 
could  be  hoped  with  confidence  that  she  would  eventually  return,  not 
as  the  former  aggressive  power,  but  as  a  great  democratic  nation. 
The  misrule  of  the  Manchu  dynasty  which  had  aggravated  the  situa- 
tion had  also  disappeared.  The  very  fact  that  this  conference  was 
being  held  at  Washington  for  the  purpose  of  arriving  at  a  mutual 
understanding  on  the  part  of  the  powers,  provided  an  added  reason 
for  dispensing  with  the  necessity  of  maintaining  the  balance  of  power 
in  the  Far  East,  which  was  the  principal  ground  on  which  the 
original  claims  of  the  different  powers  were  based.  In  the  absence 
of  that  necessity  the  Chinese  delegation  believed  that  the  time  had 
come  for  the  interested  powers  to  relinquish  their  control  over  the 
territories  leased  to  them. 

The  existence  of  such  leased  territories  had  greatly  prejudiced 
China's  territorial  and  administrative  integrity,  because  they  were 


LEASED  AEEAS  183 

all  situated  at  the  strategical  points  along  the  Chinese  littoral. 
Furthermore  these  foreign  leaseholds  had  hampered  her  work  of 
national  defense  by  constituting  in  China  a  virtual  "  imperium  in 
imperio/*  i.  e.,  an  empire  within  the  same  empire.  There  was  another 
reason  which  the  Chinese  delegation  desired  to  point  out.  The  shift- 
ing conflict  of  interests  of  the  different  lessee  powers  had  involved 
China  more  than  once  in  complications  of  their  own.  It  would  be 
sufficient  to  refer  here  to  the  Russo-Japanese  war,  which  was  caused 
by  the  Russian  occupation  of  Port  Arthur  and  Dalny.  The  Kiao- 
chow  leasehold  brought  upon  the  Far  East  the  hostilities  of  the 
European  war.  Furthermore  some  of  these  territories  were  utilized 
with  a  view  to  economic  domination  over  the  vast  adjoining  regions, 
as  points  d'appui  for  developing  spheres  of  interest  to  the  detriment 
of  the  principle  of  equal  opportunity  for  the  commerce  and  industry 
of  all  nations  in  China.  In  the  interest  not  only  of  China,  but  of 
all  nations,  and  especially  with  a  view  to  the  peace  of  the  Far  East, 
the  Chinese  delegation  asked  for  the  annulment  and  an  early  termi- 
nation of  these  leases.  But  pending  their  termination  these  areas 
should  be  demilitarized — that  is,  their  fortifications  dismantled — 
and  it  was  hoped  that  the  lessee  nations  would  undertake  not  to 
make  use  of  their  several  leased  areas  for  military  purposes,  either 
for  naval  bases  or  for  military  operations  of  any  kind  whatsoever. 

In  concluding  Mr.  Koo  observed  that  the  Chinese 
Delegation  was  fully  conscious  of  the  obligations 
which  China  would  assiune  after  the  termination  of 
the  leaseholds,  and  that  the  Chinese  Government 
would  be  prepared  to  respect  and  safeguard  the  legiti- 
mately vested  interests  of  the  different  powers 
within  those  territories. 

Kwangchow-wan.  M.  Viviani  made  a  formal  decla- 
ration, in  the  following  form : 

The  French  delegation  has  heard  the  detailed  statement  of  the 
Chinese  claims  and  is  ready  to  examine  them  in  the  most  friendly 
spirit. 


184  CHINA  AT  THE  CONFERENCE 

As  Mr.  Koo  has  just  said,  it  was  only  after  the  other  powers  had 
obtained  concessions  of  this  sort  that  France  requested  the  lease 
of  Kwangchow-wan,  in  order  that  the  equilibrium  of  the  powers  in 
the  Far  East  should  not  be  disturbed  to  her  disadvantage. 

We  have  developed  the  resources  of  the  territory  leased  to  us; 
we  have  brought  the  benefits  of  civilization  to  a  country  torn  by 
piracy,  we  have  established  the  reign  of  prosperity  and  peace  to  such 
a  degree  that  the  neighboring  population  seeks  refuge  on  our 
territory  in  times  of  trouble.  When  China  recovers  Kwangchow- 
wan  she  will  receive  back  a  country  of  greater  value  than  the  terri- 
tory she  had  leased. 

These  being  the  facts,  I  state  that,  since  we  have  responded  to 
the  appeal  of  the  American  Government  to  perform  a  sincere  and 
generous  \mdertaking,  we  must  pass  from  theory  to  action. 

The  French  delegation,  in  so  far  as  it  is  concerned,  welcomes  the 
claims  of  China  with  the  greatest  favor. 

She  must,  however,  add  conditions  to  her  acceptance :  France  can 
not  be  the  only  one  of  the  powers  to  relinquish  territory  which  has 
been  leased  to  her ;  the  settlement  of  the  retrocession,  on  the  other 
hand,  should  take  place  under  suitable  conditions  and  in  accor- 
dance with  the  forms  which  govern  such  transfers,  all  private  rights 
being  respected. 

Finally,  it  is  thoroughly  understood  that  China  shall  pledge 
herself  not  to  alienate  or  to  lease  to  any  other  power  the  territory 
thus  restored  to  her. 

In  order  to  clearly  define  the  position  of  the  French  Government, 
I  have  the  honor  to  place  in  the  hands  of  the  chairman  the  statement 
which  I  am  about  to  read : 

"After  having  taken  note  of  the  request  made  by  the  Chinese 
delegation,  December  1,  1921,  the  French  delegation  states  that  the 
Government  of  the  Eepublic  is  ready  to  join  in  the  collective  restitu- 
tion of  territories  leased  to  various  powers  in  China,  it  being  under- 
stood that  this  principle  being  once  admitted  and  all  private  rights 
being  safeguarded,  the  conditions  and  time  limits  of  the  restitution 
shall  be  determined  by  agreement  between  the  Chinese  Government 
and  each  of  the  Governments  concerned." 


LEASED  AREAS  186 

Kiaochow  and  Kwantung  District.  Mr.  Hanihara, 
on  behalf  of  the  Japanese  delegation,  submitted  a 
statement  in  writing,  as  follows : 

The  leased  territories  held  by  Japan  at  present  are  Kiaochow  and 
Kwantung  Province,  namely.  Port  Arthur  and  Dairen.  It  is  char- 
acteristic of  Japan's  leased  territories  that  she  obtained  them,  not 
directly  from  China,  but  as  successor  to  other  powers  at  consider- 
able sacrifice  in  men  and  treasure.  She  succeeded  Russia  in  the 
leasehold  of  Kwantung  Province  with  the  express  consent  of  China, 
and  she  succeeded  Germany  in  the  leasehold  of  Kiaochow  under 
the  Treaty  of  Versailles. 

As  to  Kiaochow,  the  Japanese  Government  have  already  declared 
on  several  occasions  that  they  would  restore  the  leased  territory  to 
China.  We  are  prepared  to  come  to  an  agreement  with  China  on 
this  basis.  In  fact,  there  are  now  going  on  conversations  between 
representatives  of  Japan  and  China  regarding  this  question,  initiated 
through  the  good  offices  of  Mr.  Hughes  and  Mr.  Balfour,  the  result 
of  which,  it  is  hoped,  will  be  a  happy  solution  of  the  problem.  There- 
fore, the  question  of  the  leased  territory  of  Kiaochow  is  one  which 
properly  calls  for  separate  treatment. 

The  only  leased  territory,  therefore,  which  remains  to  be  dis- 
cussed at  the  conference  so  far  as  Japan  is  concerned  is  Kwantung 
Province,  namely,  Port  Arthur  and  Dairen.  As  to  that  territory, 
the  Japanese  delegates  desire  to  make  it  clear  that  Japan  has  no 
intention  at  present  to  relinquish  the  important  rights  she  has 
lawfully  acquired  and  at  no  small  sacrifice.  The  territory  in  ques- 
tion forms  a  part  of  Manchuria — a  region  where,  by  reason  of  its 
close  propinquity  to  Japan's  territory  more  than  anything  else, 
she  has  vital  interests  in  that  which  relates  to  her  economic  life 
and  national  safety.  This  fact  was  recognized  and  assurance  was 
given  by  the  American,  British,  and  French  Governments  at  the  time 
of  the  formation  of  the  international  consortium,  that  these  vital 
interests  of  Japan  in  the  region  in  question  shall  be  safeguarded. 

In  the  leased  territory  of  Kwantung  Province  there  reside  no  less 
than  65,000  Japanese,  and  the  commercial  and  industrial  interests 
they  have  established  there  are  of  such  importance  and  magnitude 


186  CHINA  AT  THE  CONFERENCE 

to  Japan  that  they  are  regarded  as  an  essential  part  of  her  economic 
life. 

It  is  believed  that  this  attitude  of  the  Japanese  delegation  toward 
the  leased  territory  of  Kwantung  is  not  against  the  principle  of  the 
resolution  adopted  on  November  21.* 

Kowloon.'  Mr.  Balfour  pointed  out  that  leased 
territories,  though  nominally  all  described  under  the 
same  title,  were  held  under  very  different  and  varying 
circumstances.  The  Japanese  delegation  had  already 
indicated  that  Shantung  and  Manchuria,  respectively, 
were  held  on  entirely  different  bases  and  must  be 
considered  from  different  points  of  view.  Great 
Britain  had  two  different  kinds  of  leases,  and  these, 
as  he  thought  the  Chinese  delegation  itself  would 
admit,  must  be  held  to  stand  on  a  different  footing  one 
from  the  other. 

Mr.  Balfour  referred  first  to  the  leased  territory 
of  Kowloon  extension.  Why,  he  asked,  was  it  con- 
sidered necessary  that  the  leased  territory  of  Kowloon 
should  come  under  the  same  administration  as  Hong- 
kong? The  reason  was  that,  without  the  leased 
territory,  Hongkong  was  perfectly  indefensible  and 
would  be  at  the  mercy  of  any  enemy  possessing 
modern  artillery.  He  hoped  that  he  would  carry  the 
conference  with  him  when  he  asserted  that  the  safe- 
guarding of  the  position  of  Hongkong  was  not  merely 
a  British  interest  but  one  in  which  the  whole  world 
was  concerned.   He  was  informed  that  Hongkong  was 

*  For  the  Chinese  rejoinder  to  this  statement  of  the  Japanese  Dele- 
gation regarding  Manchuria,  see  the  next  chapter  entitled  "  Japan's  Claim 
to  '  Special  Interests '  in  China." 

'The  following  remarks  of  Mr.  Balfour  are  as  reported  in  the  official 
minutes. 


LEASED  AREAS  187 

easily  first  among  the  ports  of  the  world,  exceeding 
in  this  respect  Hamburg  before  the  war,  Antwerp, 
and  New  York.  Mr.  Balfour  then  read  the  following 
extract  from  "  The  United  States  Government  Com- 
mercial Handbook  of  China." 

The  position  of  the  British  colony  of  Hongkong  in  the  world's 
trade  is  unique  and  without  parallel.  It  is  a  free  port  except  for  a 
duty  on  wine  and  spirits ;  it  has  relatively  few  industries ;  it  is  one  of 
the  greatest  shipping  centers  in  the  world ;  it  is  the  distributing  point 
for  all  the  enormous  trade  of  South  China  and  about  30  per  cent  of 
the  entire  foreign  commerce  of  China.  The  conditions  of  Hongkong 
in  its  relations  to  commerce  are  in  every  way  excellent,  and  the 
Government  centers  all  its  efforts  on  fostering  trade,  while  the  future 
is  being  anticipated  by  increased  dock  facilities,  the  dredging  of  the 
fairways,  and  other  improvements.  The  merchants,  both  native  and 
foreign,  give  special  attention  to  the  assembling  and  transshipping 
of  merchandise  to  and  from  all  the  ports  of  the  world,  and  with  the 
world-wide  steamship  connection  at  Hongkong  the  necessity  of 
retransshipment  at  other  ports  is  reduced  to  a  minimum.  Hong- 
kong is  the  financial  center  of  the  East. 

Mr.  Balfour  said  he  could  not  add  anything  to  this 
perfectly  impartial  testimony  to  the  conditions  of 
absolute  equality  of  nations  under  which  the  affairs 
of  Hongkong  were  administered  and  the  motives  on 
which  they  were  conducted.  The  lease  of  the 
Kowloon  extension  had  been  obtained  for  no  other 
reason  except  to  give  security  to  the  port  of 
Hongkong,  and  it  would  be  a  great  misfortime 
if  anything  should  occur  which  was  calculated 
to  shake  the  confidence  of  the  nations,  using 
this  great  open  port,  in  its  security.  He  hoped 
he  need  say  no  more  to  explain  that  Kowloon  exten- 
sion was  in  a  different  category  and  must  be  dealt 


188  CHINA  AT  THE  CONFERENCE 

with  in  a  different  spirit  from  those  leased  territories 
which  had  been  acquired  for  totally  different  motives. 
Dr.  Koo  at  the  thirteenth  meeting  of  the  Committee 
of  the  Whole,  replying  to  the  statement  which  Mr. 
Hanihara  had  made  with  reference  to  Leased  Areas, 
declared  as  follows  concerning  Kowloon: 

"  As  to  the  leased  territory  of  Kowloon,  leased  to  Great  Britain, 
much  is  to  be  said  for  the  importance  of  Hongkong  to  the  trade  of 
nations,  and  for  the  way  in  which  its  facilities  are  made  accessible 
to  the  traders  of  the  world,  and  while  there  may  be  a  necessity  to 
provide  for  the  protection  of  the  Hongkong  Harbor  in  the  interests 
of  such  trade,  the  retention  of  Kowloon  may  not  necessarily  be,  in 
the  view  of  the  Chinese  delegation,  the  sole  solution  of  this  problem." 

In  making  the  foregoing  statement,  however,  the  Chinese  delega- 
tion have  desired  only  to  make  its  position  clear  and  they  wish  to 
reserve  further  observations  on  the  question  of  the  leased  territories 
till  a  later  opportunity,  if  the  committee  is  not  prepared  to  continue 
discussion  at  this  meeting. 

Weihaiwei.  Mr.  Balfour  then  passed  to  the  ques- 
tion of  Weihaiwei.  The  acquisition  by  Great  Britain 
of  this  lease  had  been  part  of  the  general  movement 
for  obtaining  leased  territories  in  1898,  in  which 
Russia,  Germany,  and  France,  as  well  as  Great 
Britain,  had  been  concerned.  The  motive  which  had 
animated  the  Germans  in  acquiring  Kiaochow  had 
been  largely  to  secure  economic  domination.  The 
motive  of  the  British  Government,  on  the  other  hand, 
in  acquiring  the  lease  of  Weihaiwei  had  been  con- 
nected with  resistance  to  the  economic  domination  of 
China  by  any  other  powers ;  in  fact,  it  had  been  based 
on  a  desire  for  the  maintenance  of  the  balance  of 
power  in  the  Far  East  with  a  view  to  the  maintenance 
of  the  policy  of  the  open  door,  and  had  been  intended 


LEASED  AREAS  189 

as  a  check  to  the  predatory  action  of  Germany  and 
Russia.  Mr.  Balfour  laid  emphasis  on  the  fact  that 
the  convention  of  July  1,  1898,  confirming  the  lease, 
gave  no  economic  rights  or  advantages  to  Great 
Britain.  There  had  been  no  question  of  its  being  a 
privileged  port  of  entry  for  British  commerce,  nor 
for  the  establishment  of  British  commercial  rights  to 
the  exclusion  or  diminution  of  the  rights  of  any  other 
power.  In  fact,  on  April  20, 1898,  Great  Britain  had 
announced  that  "  England  will  not  construct  any 
railroads  or  communication  from  Weihaiwei  and  the 
district  leased  therewith  into  the  interior  of  the 
Province  of  Shantung.''  As  regards  the  attitude  of 
the  British  Government  to  the  request  of  the  Chinese 
delegation  for  an  abrogation  of  those  leases,  Mr. 
Balfour  stated  that  he  had  very  little  to  add  to,  and 
he  did  not  wish  to  qualify,  the  conditions  contained  in 
the  statement  just  made  by  M.  Viviani,  which  repre- 
sented very  much  the  spirit  in  which  the  British  Gov- 
ernment approached  the  question.  The  British 
Government  would  be  perfectly  ready  to  return 
Weihaiwei  to  China  as  a  part  of  a  general  arrange- 
ment intended  to  confirm  the  sovereignty  of  China 
and  to  give  effect  to  the  principle  of  the  **  open  door. " 
This  surrender,  however,  could  only  be  undertaken  as 
part  of  some  general  arrangement,  and  he  spoke  with 
his  Government  behind  him  when  he  said  that  on 
these  conditions  he  was  prepared  to  give  up  the  rights 
which  Great  Britain  had  acquired  at  Weihaiwei. 

Mr.  Balfour,  also  with  reference  to  Weihaiwei, 
stated  specifically  that  it  was  the  policy  of  the  British 
Government  to  make  use  of  the  surrender  of  that  area 


190  CHINA  AT  THE  CONFERENCE 

in  aid  of  a  settlement  of  the  Shantung  question, — 
that  if  an  agreement  could  be  reached  between  Japan 
and  China  upon  that  question,  Great  Britain  would 
not  hesitate  to  do  its  best  to  promote  a  general  settle- 
ment by  restoring  Weihaiwei  to  the  Central  Govern- 
ment of  China. 

Summarizing  the  statements  that  had  been  made, 
the  Chairman  of  the  Committee,  Secretary  Hughes, 
said  it  appeared  that  there  were  five  special  situa- 
tions, two  relating  to  Shantung,  one  to  Kwantung, 
one  to  Kowloon,  and  one  to  Kwangchow-wan :  the 
proposal  by  France  and  the  British  offer  with  refer- 
ence to  Weihaiwei  were  important  forward  steps ;  but 
that  he  did  not  see  what  the  Committee  could  do 
further  in  the  matter  since  the  question  was  not  one 
of  general  policy. 

Dr.  Koo  thanked  the  British  and  French  Delega- 
tions for  their  offers,  but  expressed  great  disappoint- 
ment at  the  statement  by  the  Japanese  Delegate  that 
Japan  had  no  intention  of  surrendering  her  Kwan- 
tung lease. 

Chinese  Statement,  At  the  next  meeting  (the  thir- 
teenth) of  the  Committee,  held  December  7,  Dr.  Koo 
made  a  statement  by  way  of  rejoinder  to  the  state- 
ment made  by  Mr.  Hanihara  at  the  twelfth  meeting, 
in  which  he  noted  the  fact,  mentioned  by  Mr.  Hani- 
hara, that  Japan  had  obtained  her  leased  territories 
in  China  not  directly  from  China  but  from  other 
Powers  at  considerable  sacrifice  of  men  and  treasure. 
This,  said  Dr.  Koo,  confirmed  the  view  of  the  Chinese 
Delegation  that  the  maintenance  of  foreign  leased 
areas  in  China  jeopardized  the  peace  in  the  Far  East. 


LEASED  AREAS  191 

Dr.  Koo  recalled  the  fact  that  Russia's  possession  of 
Port  Arthur  and  Dalny  and  Germany's  possession  of 
Kiaochow  had  brought  on  two  wars  on  Chinese  terri- 
tory and  resulted  in  the  installation  of  Japan  her- 
self in  those  leased  areas.  *  *  As  to  the  leased  territory 
of  Kwantung  Province,  namely  Port  Arthur  and 
Dalny,"  he  said,  "  its  original  term  will  expire  in 
1925,  and  while  an  extension  to  99  years  was  obtained 
by  Japan  in  1915  it  was  obtained  in  such  circum- 
stances that  the  dispute  about  its  validity  remains  one 
of  the  most  grave  outstanding  questions  between 
China  and  Japan." 

Dr.  Koo  then  went  on  to  discuss  the  implications  of 
Mr.  Hanihara's  remarks  as  to  the  relationship 
between  the  Port  Arthur  and  Dalny  lease  and  the 
Japanese  interests  in  Manchuria.  This  portion  of 
Dr.  Koo's  remarks  can  best  be  presented  in  the  next 
chapter,  which  deals  with  Japan's  claims  to  **  Special 
Interests  "  in  China. 

Weihaiwei.  At  the  fifth  plenary  session  of  the 
Conference,  held  February  1, 1922,  at  which  the  Shan- 
tung Agreement  between  China  and  Japan  was 
reported,  Mr.  Balfour,  in  fulfillment  of  the  under- 
taking which  he  had  previously  made,  announced 
that  the  British  Government  was  ready  to  surrender 
the  lease  of  Weihaiwei  under  suitable  conditions  simi- 
lar to  those  that  had  been  agreed  upon  \\dth  reference 
to  the  leased  area  of  Kiaochow.  **  When  this  is 
accomplished,"  he  said,  *'  this  great  Province  of 
China  (Shantung)  will  again  be  what  every  Chinese 
citizen  must  desire  that  it  should  be,  in  the  fullest 
sense  an  integral  part  of  that  great  Empire." 


19»  CHINA  AT  THE  CONFERENCE 

Kwangchow-wan.  The  next  day,  at  the  thirtieth 
meeting  of  the  Committee  of  the  Whole,  Mr.  Sze,  in 
behalf  of  the  Chinese  Delegation,  said  that  he  had 
understood  that  the  French  Delegation  would  make 
a  further  statement  with  regard  to  its  lease  of 
Kwangchow-wan.  M.  Sarraut,  replying  to  this  sug- 
gestion, repeated  merely  what  M.  Viviani  had  said  at 
the  meeting  of  December  4,  namely,  that  France  was 
ready  to  surrender  her  lease  pari  passu  with  the  sur- 
render of  their  respective  leases  by  aU  the  other 
Powers,  but  that,  even  if  this  surrender  could  not  be 
secured,  France  would  be  willing  to  arrange  directly 
with  the  Chinese  Government  the  conditions  under 
which,  and  the  time  when,  the  restitution  of  Kwang- 
chow-wan should  become  effective. 


CHAPTER  XV 

Japan's  Claim  to  '^  Special  Interests  "  in  China 


Lansing-Ishii  Agreement.  That  Japan  has  claimed 
**  Special  Interests  "  in  China,  that  is  to  say,  inter- 
ests somewhat  different  to  and  somewhat  greater  than 
those  claimed  by  the  other  Powers,  has  been  known 
for  a  considerable  number  of  years,  a  claim  which 
found  declaration,  if  not  definition,  in  a  number  of 
treaties  or  understandings  which  she  has  had  with 
other  Powers,  notably  in  the  Anglo-Japanese  Alli- 
ance agreements  of  1902,  1905  and  1911,  in  the 
Franco-Japanese  Arrangement  of  1907,  and  in  the 
so-called  Lansing-Ishii  Agreement  of  November  2, 
1917.  How  significant  to  the  other  Powers  and  seri- 
ous to  China  were  her  desires  or  claims  under  this  title 
or  designation  was  made  known  to  the  world  when 
Secretary  Lansing,  in  August,  1918,  gave  to  the  Com- 
mittee on  Foreign  Relations  of  the  United  States 
Senate  a  statement  of  the  conversations  between  him- 
self and  Viscount  Ishii  leading  up  to  the  agreement 
which  has  since  borne  their  joint  names. 

The  divergence  between  the  Japanese  and  Ameri- 
can Governments  as  to  the  significance  to  be  attached 
to  the  recognition  by  the  United  States,  and  the  asser- 
tion by  Japan,  that  **  territorial  propinquity  creates 
special  relations  between  countries,"  and,  conse- 
quently that  **  Japan  has  special  interests  in  China, 
U  193 


194  CHINA  AT  THE  CONFERENCE 

particularly  in  the  part  to  which  her  possessions  are 
contiguous,"  was  disclosed  in  letters  of  the  Russian 
Ambassador  to  his  Government  which  reported  state- 
ments made  to  him  by  the  Japanese  Minister  for 
Foreign  Affairs.^ 

Consortium.  Still  more  significant  becomes 
Japan's  claim  to  special  rights  or  interests  in  China, 
and  especially  in  South  Manchuria  and  Eastern  Inner 
Mongolia,  when  one  reads  the  correspondence  leading 
up  to  the  establishment,  in  1920,  of  the  International 
Banking  Consortium. 

In  that  correspondence  the  Japanese  Government 
made  strenuous  efforts  to  have  Japan's  railway  and 
other  activities  in  Manchuria  and  Mongolia,  past  and 
prospective,  excluded  from  the  operations  of  the  Con- 
sortiimi. 

Japan  in  her  Memorandum  of  March  2,  1920, 
supplied  to  the  American  and  British  Governments, 
asked  those  Governments  to  accept  a  Formula 
according  to  which  **  in  matters  ....  relating  to 
loans  affecting  South  Manchuria  and  Eastern  Inner 
Mongolia,  which  in  their  opinion  are  calculated  to 
create  a  serious  impediment  to  the  security  of  the 
economic  life  and  national  defense  of  Japan,  the 
Japanese  Government  reserve  the  right  to  take  the 
necessary  steps  to  guarantee  such  security." 

Both  of  the  Governments  addressed  found  this 
Formula  unsatisfactory.  The  British  Government 
in  its  Memorandum  of  March  19,  1920,  declared  that 

*  For  general  discussion  of  Japan's  claim  to  "  Special  Interests  "  in  China, 
see  Chapter  XVI  of  Willoughby's  Foreign  Rights  and  Interests  in  China. 


JAPAN'S  SPECIAL  INTERESTS  195 

it  was  "  so  ambiguous  and  general  in  character  that 
it  might  be  held  to  indicate  on  the  part  of  the  Japan- 
ese Government  a  continued  desire  to  exclude  the 
cooperation  of  the  other  three  banking  groups  from 
participating  in  the  development,  for  China's  benefit, 
of  important  parts  of  the  Chinese  Republic  and  there- 
fore creates  the  impression  that  the  Japanese  reserva- 
tion cannot  be  reconciled  with  the  principle  of  the 
independence  and  the  realization  of  the  integrity  of 
China."  The  American  Government,  in  its  Memo- 
randum of  March  16, 1920,  expressed  its  **  grave  dis- 
appointment "  that  the  Japanese  Memorandum 
should  be  in  terms  so  "exceedingly  ambiguous  and 
in  character  so  irrevocable  "  as  to  indicate  a  con- 
tinued desire  upon  the  part  of  the  Japanese  Govern- 
ment "  to  exclude  American,  British  and  French 
banking  interests  from  participation  in  the  develop- 
ments, for  the  benefit  of  China,  of  important  parts 
of  that  Republic — a  construction  which  could  not  be 
reconciled  with  the  principle  of  the  independence  and 
territorial  integrity  of  China."  The  American 
Memorandum  continued : 

The  Government  of  the  United  States  is  not  unsympathetic  with 
the  professed  objects  of  the  principle  embodied  in  the  Japanese 
formula:  it  considers,  on  the  other  hand,  first,  that  the  right  of 
national  self-preservation  is  one  of  universal  acceptance  in  the  rela- 
tions between  states,  and  therefore  would  not  require  specific  formu- 
lation as  to  its  application  in  any  particular  instance;  and,  second, 
that  the  recognition  of  that  principle  is  implicit  in  the  terms  of  the 
notes  exchanged  between  Secretary  Lansing  and  Viscount  Ishii  on 
November  2,  1917.  This  Government  therefore  considers  that  by 
reason  of  the  particular  relationships  of  understanding  thus  existing 
between  the  United  States  and  Japan,  and  those  which,  it  is  under- 


196  CHINA  AT  THE  CONFERENCE 

stood,  similarly  exist  between  Japan  and  the  other  Powers  proposed 
to  be  associated  with  it  in  the  Consortium,  there  would  appear  to  be 
no  occasion  to  apprehend  on  the  part  of  the  Consortium  any  activi- 
ties directed  against  the  economic  life  or  national  defense  of  Japan. 
It  is  therefore  felt  that  Japan  could  with  entire  assurance  rely  upon 
the  good  faith  of  the  United  States  and  of  the  other  two  Powers  asso- 
ciated in  the  Consortium  to  refuse  their  countenance  to  any  opera- 
tion inimical  to  the  vital  interests  of  Japan ;  and  that  Japan's  in- 
sistence that  the  other  three  Powers  join  with  it  in  the  proposed 
formula  as  a  condition  precedent  would  only  create  misapprehension. 
It  is  felt,  moreover,  that  such  a  formula  would  not  only  be  unneces- 
sary, but  would  lend  itself  to  misconstruction  for  the  reason  that  it 
apparently  differentiates  between  the  status  of  South  Manchuria 
and  Eastern  Inner  Mongolia  and  that  of  other  Chinese  territory. 
The  mere  fact  of  differentiation  would,  it  is  apprehended,  give  rise 
to  questions  which  would  tend  still  further  to  unsettle  the  already 
complex  situation  in  China.  This  Government  is  therefore  hopeful 
that  the  Japanese  Government  may,  in  view  of  its  several  existing 
relationships  of  understanding  with  the  United  States  and  the  other 
two  Powers,  be  persuaded  to  rely  upon  their  good  faith  in  this  matter 
and  forego  its  proposal  to  require  explicit  guarantees,  the  mere 
statement  of  which  opens  the  way  for  possible  misconstruction  and 
misapprehension  in  the  future. 

Replying  to  these  Memoranda  from  the  American 
and  British  Governments,  the  Japanese  Government 
abandoned  its  request  for  the  acceptance  of  its 
formula,  in  view  of  the  assurance  which  it  had  re- 
ceived (to  quote  the  words  of  the  reply)  **  that  the 
right  of  national  self-preservation,  which  forms  the 
basis  of  the  guarantee  required  by  Japan  in  order  to 
assure  the  security  of  her  national  defense  and  the 
economic  existence  of  her  people,  not  only  are  of 
universal  acceptance  but  one  of  which  the  recognition 
is  implied  in  the  terms  of  the  notes  exchanged  between 


JAPAN'S  SPECIAL  INTEEESTS  197 

Secretary  Lansing  and  Viscount  Ishii,  so  that  the 
new  Consortium  would  in  no  case  embark  upon  any 
activities  against  the  national  defense  and  the  eco- 
nomic existence  of  Japan  and  so  that  the  Powers 
associated  in  the  Consortium  would  refuse  their 
countenance  to  any  enterprise  inimical  to  the  vital 
interests  of  Japan.'"' 

From  the  foregoing  one  sees  how  far  the  American 
and  British  Governments  were  from  giving  approval 
to  the  statement  made  by  Mr.  Hanihara  in  the  Com- 
mittee of  the  Whole  with  reference  to  Japan's  rights 
or  interests  in  Manchuria.  Secretary  Hughes,  in 
behalf  of  the  American  Delegation,  contented  himself 
with  the  statement  that  he  assumed  that,  in  the  refer- 
ences which  had  been  made  to  the  Consortium,  the 
representatives  of  Japan  and  China  had  no  intention 
of  referring  to  anything  other  than  the  actual  texts 
of  the  correspondence,  and,  as  that  had  been  made 
public,  he  did  not  consider  it  necessary  to  add  any- 
thing thereto.' 

Manchuria.  This  Consortium  correspondence  and 
other  declarations  of  the  Japanese  Government  have 
tended  to  make  plain  that  Japan,  by  reason  of  the 
considerable  railway  and  other  investments  which 
her  nationals  have  made  in  Manchuria  and  Mongolia, 
reinforced  by  the  urgent  need  which  her  people  and 
industries  have  for  the  food-stuffs  and  mineral  re- 
sources which  are  available  in  China,  has  a  keen 

*  One  sees  in  this  language  a  possible  source  of  some  of  the  words  of  the 
fourth  Root  Resolution  adopted  by  the  Conference. 

•Thirteenth  meeting  of  the  Committee,  Senate  Document,  No.  126,  p.  552. 
SS2. 


198  CHINA  AT  THE  CONFERENCE 

desire  to  obtain,  in  some  way,  an  assurance  that  these 
food-stuffs  and  natural  resources  of  China  shall  be 
made  available  to  her  people.  The  same  desire  serves 
to  explain  her  recent  policies  in  Eastern  Siberia.  It 
is  equally  plain  that,  had  she  been  able  to  do  so,  she 
would  have  liked  to  obtain  from  the  other  Powers  a 
recognition  that  these  economic  needs  of  her  people, 
taken  together  with  the  concessions  already  obtained 
in  China,  and  especially  Manchuria,  were  sufficient 
to  create  a  right  upon  her  part  that  should  be  inter- 
nationally recognized.  At  the  same  time  it  is  impor- 
tant to  note  that,  at  the  second  meeting  of  the  Com- 
mittee of  the  Whole,  held  November  19,  Baron  Kato, 
speaking  for  the  Japanese  Delegation,  said : 

We  adhere  without  condition  or  reservation  to  the  principle  of  the 
open  door  or  equal  opportunity  in  China.  We  look  to  China  in 
particular  for  the  supply  of  raw  materials  essential  to  our  industrial 
life,  and  for  foodstuffs  as  well.  In  the  purchase  of  such  materials 
from  China,  as  well  as  in  all  our  trade  relations  with  that  country, 
we  do  not  claim  any  special  rights  or  privileges,  and  we  welcome  fair 
and  honest  competition  with  all  nations. 

As  has  been  already  said.  Dr.  Koo,  at  the  thirteenth 
meeting  of  the  Committee,  made  a  reply  to  Mr. 
Hanihara's  statement  regarding  leased  areas.  As  to 
Mr.  Hanihara's  assertions  regarding  Japan's  inter- 
ests in  Manchuria,  Dr.  Koo  said : 

Both  Port  Arthur  and  Dalny  are  situated  in  Manchuria,  which  is 
an  important  part  of  Chinese  territory.  Not  only  does  the  national 
safety  of  China  rely  upon  the  safeguarding  of  Manchuria  as  an 
integral  portion  of  the  Chinese  Eepublic,  because  these  three  eastern 
Provinces,  as  the  Chinese  people  call  Manchuria,  have  been  the 
historic  road  of  invasion  into  China  throughout  the  past  centuries, 
but  also  the  security  of  the  economic  life  of  the  Chinese  people 


JAPAN'S  SPECIAL  INTERESTS  199 

depends  in  a  very  vital  measure  upon  the  conservation  and  develop- 
ment with  the  surplus  capital  of  the  world  of  the  natural  and  agri- 
cultural resources  in  Manchuria — a  region  where  to-day  an  abun- 
dance of  raw  material  and  food  supplies  are  already  accessible  to 
all  nations,  on  fair  terms  and  through  the  normal  operation  of  the 
economic  law  of  supply  and  demand.  However,  Manchuria  is  an 
important  outlet  for  the  surplus  population  from  the  congested 
provinces  in  other  parts  of  China. 

In  view  of  the  foregoing  facts,  it  is  clear  that  China  has  such 
truly  vital  interests  in  Manchuria  that  the  interests  of  any  foreign 
power  therein,  however  important  they  may  be  in  themselves,  can  not 
compare  with  them.  The  fact  of  close  propinquity  of  Manchuria  to 
Korea,  if  it  justifies  any  claim  to  consideration,  can  be  equitably 
appealed  to  only  on  the  condition  of  reciprocity. 

As  to  the  statement  that  assurance  was  given  by  the  American, 
British,  and  French  Governments  at  the  time  of  the  formation  of 
the  international  consortium,  that  the  vital  interests  of  Japan  in 
Manchuria  shall  be  safeguarded,  the  Chinese  delegation  do  not  feel 
in  a  position,  since  China  was  not  consulted  at  the  time,  to  express 
an  opinion  as  to  the  question  of  its  accuracy.  Should  such  assurance 
have  been  given,  they  could  not,  however,  conceal  their  feeling  that 
it  can  not  be  reconciled  with  the  principle  which  was  adopted  by 
the  conference  on  November  21  of  respect  for  the  sovereignty,  the 
independence  and  the  territorial  and  administrative  integrity  of 
China. 

Also,  upon  another  occasion,  Dr.  Koo  took  pains 
to  refer  to  Japan's  claims  to  interests  in  China 
based  upon  its  propinquity  to  that  country.  In  his 
statement  made  at  the  fourteenth  meeting  of  the 
Committee  of  the  Whole,  with  reference  to  the  Inter- 
Power  Agreements  relating  to  China,  he  called  atten- 
tion to  the  fact  that  certain  of  these  agreements  had 
dealt  with  the  safeguarding  of  special  interests  in  the 
Far  East  or,  specifically,  in  China.   As  to  this  he  said : 


200  CHINA  AT  THE  CONFERENCE 

The  maintenance  of  the  independence  and  territorial  integrity  of 
China  touched  the  supreme  rights  of  China.  As  to  the  recognition 
of  propinquity  as  creating  special  interests  in  China,  it  was  equally 
obvious  that  such  recognition  could  not  be  valid,  because  special 
interests  on  Chinese  territory  could  not  be  created  without  the  con- 
sent of  China,  and  China  had  always  contested  the  soundness  of  the 
doctrine  of  propinquity. 

At  the  twentieth  meeting  of  the  Committee  of  the 
Whole,  when  the  matter  of  the  Open  Door  was  under 
discussion,  the  Japanese  Delegation  again  returned 
to  this  subject.  Baron  Shidehara  submitting  the  fol- 
lowing formal  statement : 

The  Japanese  Delegation  understands  that  one  of  the  primary 
objects  which  the  present  Conference  on  Far  Eastern  Questions  has 
in  view  is  to  promote  the  general  welfare  of  the  Chinese  people  and, 
at  the  same  time,  of  all  nations  interested  in  China.  For  the  reali- 
zation of  that  desirable  end,  nothing  is  of  greater  importance  than 
the  development  and  utilization  of  the  unlimited  natural  resources 
of  China. 

It  is  agreed  on  all  sides  that  China  is  a  country  with  immense 
potentialities.  She  is  richly  endowed  by  nature  with  arable  soil,  with 
mines  and  with  raw  materials  of  various  kinds.  But  those  natural 
resources  are  of  little  practical  value,  so  long  as  they  remain  unde- 
veloped and  unutilized.  In  order  to  make  full  use  of  them,  it  seems 
essential  that  China  shall  open  her  own  door  to  foreign  capital  and 
to  foreign  trade  and  enterprise. 

Touching  on  this  subject.  Dr.  Sze,  on  behalf  of  the  Chinese  Dele- 
gation, made  an  important  statement  at  the  Full  Committee  on 
November  16,  declaring  that "  China  wishes  to  make  her  vast  natural 
resources  available  to  all  people  who  need  them."  That  statement 
evidently  represents  the  wisdom  and  foresight  of  China,  and  the 
Japanese  Delegation  is  confident  that  the  principle  which  it  enun- 
ciates will  be  carried  out  to  its  full  extent. 

It  is  to  be  hoped  that,  in  the  application  of  that  principle,  China 
may  be  disposed  to  extend  to  foreigners,  as  far  as  possible,  the 


JAPAN'S  SPECIAL  INTERESTS  201 

opportunity  of  cooperation  in  the  development  and  utilization  of 
China's  natural  resources. 

Any  spontaneous  declaration  by  China  of  her  policy  in  that  direc- 
tion will  be  received  with  much  gratification  by  Japan  and  also,  bo 
doubt,  by  all  other  nations  interested  in  China.  Eesolutions  which 
have  hitherto  been  adopted  by  this  Committee  have  been  uniformly 
guided  by  the  spirit  of  self-denial  and  seK-sacrifice  on  the  part  of 
foreign  Powers  in  favor  of  China.  The  Japanese  Delegation  trusts 
that  China,  on  her  part,  will  not  be  unwilling  to  formulate  a  policy 
which  will  prove  of  considerable  benefit,  no  less  to  China  herself, 
than  to  all  nations. 

The  Chinese  Delegation  did  not  make  a  reply  to 
this  statement  until  the  thirtieth  meeting  of  the  Com- 
mittee, held  February  2,  when  Mr.  Sze  made  the 
following  statement: 

At  the  meeting  of  this  Committee  on  January  18th,  Baron 
Shidehara  on  behalf  of  the  Japanese  Delegation,  expressed  a  hope 
that  China  might  be  disposed  to  extend  to  foreigners,  as  far  as  pos- 
sible, the  opportimity  of  cooperation  in  the  development  and  utiliza- 
tion of  China's  natural  resources,  and  added  that  any  spontaneous 
declaration  of  her  policy  in  that  direction  would  be  received  with 
much  gratification. 

The  Chinese  Government,  conscious  of  the  mutual  advantage 
which  foreign  trade  brings,  has  hitherto  pursued  an  established 
policy  to  promote  its  development.  Of  this  trade,  products  of  nature 
of  course  form  an  important  part.  In  view  of  this  fact,  as  well  as 
of  the  requirements  of  her  large  and  increasing  population,  and  the 
growing  needs  of  her  industries,  China,  on  her  part,  has  been  steadily 
encouraging  the  development  of  her  natural  resources,  not  only  by 
permitting,  under  her  laws,  the  participation  of  foreign  capital,  but 
also  by  other  practical  means  at  her  disposal.  Thus  in  affording 
facilities  and  fixing  rates  for  the  transportation  on  all  her  railways 
of  such  products  of  nature  as  well  as  of  other  articles  of  merchandise, 
she  has  always  followed  and  observed  the  principle  of  strict  equality 
of  treatment  between  all  foreign  shippers.  Thanks  to  this  liberal 
policy,  raw  material  and  food  supplies  in  China — as  my  colleague 


202  CHINA  AT  THE  CONFERENCE 

Dr.  Koo  stated  before  this  Committee  on  a  previous  occasion  with 
reference  to  Manchuria,  and  it  is  equally  true  of  other  parts  of 
China — are  today  accessible  to  all  nations,  on  fair  terms  and  through 
the  normal  operation  of  the  economic  law  of  supply  and  demand. 

The  Chinese  Government  does  not  at  present  contemplate  any  de- 
parture from  this  mutually  beneficial  course  of  action.  Consistent 
with  the  vital  interests  of  the  Chinese  nation  and  the  security  of  its 
economic  life,  China  will  continue,  on  her  own  accord,  to  invite 
cooperation  of  foreign  capital  and  skill  in  the  development  of  her 
natural  resources. 

The  Chinese  Delegation,  animated  by  the  same  spirit  of  self-denial 
and  self-sacrifice  which  Baron  Shidehara  was  good  enough  to  assure 
the  Chinese  Deelgation  had  uniformly  guided  the  foreign  Powers 
here  represented  in  the  Eesolutions  hitherto  adopted  by  the  Com- 
mittee in  favor  of  China,  has  no  hesitation  to  make  the  foregoing 
statement.  It  is  all  the  more  glad  to  make  it,  because  it  feels  con- 
fident that  the  Japanese  Delegation,  in  expressing  the  hope  for  a 
voluntary  declaration  of  policy  on  China's  part  in  regard  to  the 
development  and  utilization  of  her  natural  resources,  was  not  seeking 
any  special  consideration  for  Japan  on  this  subject  or  for  the  foreign 
Powers  as  a  whole,  but  merely  wished  to  be  assured  that  China  was 
disposed  to  extend  the  opportunity  of  cooperation  to  foreigners  on 
the  same  terms  as  are  accorded  by  nations  of  the  world  equally 
favored  by  nature  in  the  possession  of  rich  natural  resources. 

Mining  Code.  In  connection  with  Baron  Shide- 
hara's  statement,  and  the  reply  of  the  Chinese 
Delegation  thereto,  Sir  Auckland  Geddes  referred  to 
an  undertaking  entered  into  by  China  in  1902  and 
again  in  1903,  in  Anglo-Chinese  and  Sino-American 
treaties  of  those  years  with  reference  to  a  mining 
code. 

Article  IX  of  the  Anglo-Chinese  treaty  provided 
that 

The  Chinese  Government,  recognizing  that  it  is  advantageous  for 
the  country  to  develop  its  mineral  resources,  and  that  it  is  desirable 


JAPAT^'S  SPECIAL  INTERESTS  203 

to  attract  foreign  as  well  as  Chinese  capital  to  embark  in  mining 
enterprises,  agree  within  one  year  from  the  signing  of  this  treaty 
to  initiate  and  conclude  the  revision  of  the  existing  mining  regula- 
tions. China  will,  with  all  expedition  and  earnestness,  go  into  the 
whole  question  of  mining  rules  and,  selecting  from  the  rules  of 
Great  Britain,  India,  and  other  countries,  regulations  which  seem 
applicable  to  the  condition  of  China,  she  will  recast  her  present 
mining  rules  in  such  a  way  as,  while  promoting  the  interests  of 
Chinese  subjects  and  not  injuring  in  any  way  the  sovereign  rights 
of  China,  shall  offer  no  impediment  to  the  attraction  of  foreign 
capital  or  place  foreign  capitalists  at  a  greater  disadvantage  than 
they  would  be  under  generally  accepted  foreign  regulations. 

Any  mining  concession  granted  after  the  publication  of  these  new 
rules  shall  be  subject  to  their  provisions. 

This  undertaking,  said  Sir  Auckland,  corre- 
sponded verbally  very  closely  to  one  portion  of  the 
statement  that  the  Chinese  Delegation  had  made,  and 
he  was  interested  to  know  if  China  hoped  soon  to 
promulgate  such  a  code  as  has  been  promised. 

To  this  inquiry  Mr.  Sze  responded  that  the  Chinese 
Delegation  did  not  have  at  hand  the  information 
which  would  enable  it  to  give  a  satisfactory  answer. 
He  would,  however,  refer  to  the  fact  that  there  was 
in  operation  in  China  a  law  which  permitted  the 
investment  in  Chinese  mines  of  foreign  capital  to  an 
amount  as  large  as  fifty  per  cent,  and  that,  under  that 
law,  several  British  enterprises,  in  conjunction  with 
Chinese  capital,  had  profitably  invested  large  sums. 
As  one  instance  of  this  he  could  cite  the  Chinese  Engi- 
neering and  Mining  Company  which  had,  in  1919, 
made  a  profit  so  large  that,  as  he  had  been  told,  it  had 
paid  to  the  British  Treasury  income  and  super-taxes 
amounting  to  over  £1,000,000. 


204  CHINA  AT  THE  CONFERENCE 

Sir  Auckland  said  that  he  had  been  under  the 
impression  that  that  company  had  operated  under  a 
special  charter,  and,  further,  that  he  was  not  sure  that 
the  satisfactory  profits  had  been  due  to  the  mining 
code  rather  than  to  the  richness  of  the  mine  that  had 
been  operated. 


CHAPTER  XVI 

The  Open  Door 


In  its  statement  of  the  Ten  Points  or  Principles 
which  the  Chinese  Delegation  had  made  to  the  Con- 
ference on  November  16,  the  following  declaration 
was  made : 

China,  being  in  full  accord  with  the  principle  of  the  so-called 
open-door  or  equal  opportunity  for  the  commerce  and  industry  of  all 
nations  having  treaty  relations  with  China,  is  prepared  to  accept  and 
apply  it  in  all  parts  of  the  Chinese  Republic  without  exception. 

Upon  a  number  of  occasions  in  the  past  the  Chinese 
Government  in  its  communications  with  foreign 
Powers  had  made  approving  reference  to  the  Open 
Door  doctrine  as  applied  to  herself,  but  this  declara- 
tion to  the  Conference,  which  has  been  quoted,  was 
the  first  fonnal  statement  in  behalf  of  the  Chinese 
Government  that  it  was  prepared  itself  to  accept  and 
abide  by  this  doctrine  in  its  dealings  with  the  treaty 
Powers  or  their  nationals.^ 

As  for  the  Powers  themselves,  they  gave  a  renewed 
adherence  to  the  doctrine  in  the  third  of  the  "  Root 
Resolutions,"  adopted  November  21,  which  declares 
their  firm  intention 

'  For  instances  in  which  China  had  referred  with  approval  to  the  Open 
Door  doctrine,  see  her  reply  of  November  9,  1917,  to  the  American  Govern- 
ment's notification  of  the  Lansing-Ishii  Agreement;  her  communication  of 
July  21,  1910,  to  the  Treaty  Powers  with  reference  to  the  Russo-Japanese 
Convention  of  July  4,  1910;  and  her  statement  to  the  Powers  giving  reasons 
why  she  had  signed  the  Treaties  and  Agreements  of  May  25,  1915. 

205 


206  CHINA  AT  THE  CONFERENCE 

To  safeguard  for  the  world,  so  far  as  within  their  [our]  power, 
the  principle  of  equal  opportunity  for  the  commerce  and  industry 
of  all  nations  throughout  the  territory  of  China. 

The  difficult  matter  still  remained,  however,  of 
giving  to  the  Open  Door  doctrine  a  more  precise  and 
mutually  agreed  upon  definition  than  it  had  previ- 
ously received,  and,  possibly,  of  indicating  certain 
specific  applications  to  be  made  of  it  as  thus  defined. 

Open  Door  Defined.  At  the  eighteenth  meeting  of 
the  Committee  of  the  Whole,  held  January  16,  the 
Chairman,  Secretary  Hughes,  after  quoting  the  third 
of  the  Root  Resolutions,  said  that  *'  it  was  manifest 
that  the  granting  of  special  concessions  of  a  monopo- 
listic or  preferential  character,  or  which  secured  a 
general  superiority  of  rights  for  one  power  to  the 
exclusion  of  equal  opportunity  for  other  powers,  was 
in  opposition  to  the  maintenance  and  application  of 
this  principle  of  equal  opportunity."  In  order,  then, 
he  continued,  that  the  Committee  might  discuss  the 
principle  more  concretely,  he  would  submit  for  adop- 
tion the  following  draft  resolution : 

With  a  view  to  applying  more  effectually  the  principle  of  the 
open  door  or  equality  of  opportunity  for  the  trade  and  industry  of  all 
nations,  the  powers  represented  in  this  conference  agree  not  to  seek 
or  support  their  nationals  in  asserting  any  arrangement  which  might 
purport  to  establish  in  favor  of  their  interests  any  general  superiority 
of  rights  with  respect  to  commercial  or  economic  development  in  any 
designated  region  of  the  territories  of  China,  or  which  might  seek  to 
create  any  such  monopoly  or  preference  as  would  exclude  other 
nationals  from  undertaking  any  legitimate  trade  or  industry  or  from 
participating  with  the  Chinese  Government  in  any  category  of  public 
enterprise,  it  being  understood  that  this  agreement  is  not  to  be  so  con- 


THE  OPEN  DOOE  207 

strued  as  to  prohibit  the  acquisition  of  such  properties  or  rights  as 
may  be  necessary  to  the  conduct  of  a  particular  commercial  or  in- 
dustrial undertaking.^ 

Sir  Auckland  Geddes,  commenting  upon  this  pro- 
posal, raised  the  points :  (1)  whether  it  would  not  be 
well  to  make  provision  for  some  simple  machinery,  in 
the  nature  of  a  court  of  reference,  to  which  differ- 
ences of  opinion  with  regard  to  matters  embraced 
within  the  resolution  might  be  referred;  and  (2) 
whether  specific  provision  should  not  be  made  for  the 
recognition  and  protection  of  such  things  as  patent 
rights,  trade-marks,  copyrights,  mining  permits  and 
the  like. 

Secretary  Hughes,  in  further  explanation  of  his 
resolution,  said  that  it  was  not  the  intention  **  to 

*  In  connection  with  definition  of  the  Open  Door  it  is  important  to 
consider  the  American  declaration  contained  in  the  note  of  July  1,  1921, 
of  Secretary  Hughes  to  Mr.  Sze,  the  Chinese  Minister  at  Washington — a 
note  arising  out  of  protests  made  by  several  Powers  against  a  wireless 
concession  granted  by  the  Chinese  Government  to  an  American  corporation. 
Secretary  Hughes  then  said : 

"  Your  reference  to  the  principle  of  the  Open-Door  affords  me  the  op- 
portunity to  assure  you  of  this  Government's  continuance  in  its  whole- 
hearted support  of  that  principle,  which  it  has  traditionally  regarded  as 
fundamental  both  to  the  interests  of  China  itself  and  to  the  common  in- 
terests of  all  powers  in  China,  and  indispensable  to  the  free  and  peaceful 
development  of  their  commerce  on  the  Pacific  Ocean.  The  Government  of 
the  United  States  never  has  associated  itself  with  any  arrangement  which 
sought  to  establish  any  special  rights  in  China  which  would  abridge  the 
rights  of  the  subjects  or  citizens  of  other  friendly  states;  and  I  am  happy 
to  assure  you  that  it  is  the  purpose  of  this  Government  neither  to  partici- 
pate in  nor  to  acquiesce  in  any  arrangement  which  might  purport  to  estab- 
lish in  favor  of  foreign  interests  a  superiority  of  rights  with  respect  to 
commercial  and  economic  development  in  designiated  regions  of  the  terri- 
tories of  China,  or  which  might  seek  to  create  any  such  monopoly  or 
preference  as  would  exclude  other  nationals  from  undertaking  any  legiti- 
mate trade  or  industry  or  from  participating  with  the  Chinese  Govern- 
ment in  any  category  of  public  enterprise." 


208  CHINA  AT  THE  CONFERENCE 

interfere  with  the  appropriate  relations  between 
China  and  her  own  nationals/'  and  that,  therefore 
the  phrase  *'  other  than  China  "  might  well  be 
inserted  in  the  draft.  He  agreed  that,  before  the 
labors  of  the  Conference  were  completed,  it  might  be 
well  to  provide  some  sort  of  machinery  for  dealing 
with  questions  which  might  arise  with  reference  to 
the  application  of  the  principles  to  which  the  Powers 
might  give  their  adherence.  Regarding  the  last 
clause  of  this  resolution  he  said  that  there  was  a 
great  difference  between  a  particular  enterprise  or 
undertaking  of  commerce  and  industry,  and  the  asser- 
tion of,  or  the  endeavor  to  obtain,  a  position  from 
which  it  could  be  asserted  that  one  Power  or  its 
nationals  had  a  general  superiority  of  right  in  any 
region  of  China. 

"  The  distinction  between  a  general  superiority  of 
rights,"  he  said,  **  and  the  right  to  conduct  a  particu- 
lar enterprise  and  to  have  the  rights  and  properties 
which  were  essential  to  the  conduct  of  a  particular 
enterprise  was,  he  thought,  quite  apparent."  He 
continued : 

With  regard  to  the  point  that  patents,  trade-marks,  copyrights, 
and  mining  permits  represented  a  phase  of  monopolistic  endeavor, 
quo  ad  hoc,  was  of  course  well  taken;  but  he  assumed  that  it  was 
certainly  within  the  intention  and,  he  would  suppose,  within  the 
form  of  expression,  that  those  particular  rights  would  be  embraced 
in  the  particular  commercial  or  industrial  undertaking  with  which 
it  was  not  the  purpose  of  this  agreement  to  interfere.  For  example, 
if  it  were  proposed  that  there  should  be  an  opportunity  to  obtain 
patent  rights  or  copjrrights  such  as  inventors  or  authors  enjoyed  in 
this  country  or  other  countries,  the  fact  that  any  inventor  or  author 
had  that  opportunity  and  when  he  made  use  of  it  according  to  the 


THE  OPEN  DOOE  209 

law  obtained  to  that  extent  a  monopoly  was  not  in  any  true  sense 
an  exclusion  of  anybody  else  who  had  the  same  opportunity  with 
respect  to  the  same  sort  of  enterprise  under  the  same  rules  which 
were  generally  applicable.  But  if  it  were  said  that  in  any  particular 
Province  or  region  of  China  no  one  should  obtain  patents  except  the 
nationals  of  a  particular  power  or  that  no  one  should  enjoy  the 
opportunity  to  have  this  or  that  sort  of  enterprise  save  one  power  or 
its  nationals,  then  a  situation  would  be  created  involving  an  assertion 
of  an  economic  preference  or  superiority  of  privilege  which  would 
be  utterly  inconsistent  with  the  open-door  principle.  He  granted 
the  difficulty  of  stating  that  precisely.  Any  improvement  that  could 
be  suggested  would  be  welcome.  The  main  point  was  that,  when  it 
came  to  dealing  with  this  question  of  concessions  and  monopolies  and 
preferential  economic  privileges,  a  clear  understanding  should,  if 
possible,  be  arrived  at  by  this  conference  which  would  promote  the 
friendly  relations  which  existed  between  the  powers  represented  and 
the  spirit  of  friendly  cooperation  which  had  so  happily  been  in 
evidence. 

Mr.  Balfour,  after  commenting  favorably  upon  the 
fact  that  the  language  of  the  resolution  involved  the 
absolute  repudiation  of  spheres  of  influence,  went  on 
to  speak  of  the  last  clause  of  the  resolution.  As  con- 
cerned most  industrial  enterprises,  he  said,  there 
would  be  no  difficulty  in  applying  the  rule,  but  that 
there  were  kinds  of  undertakings — railways  and  tele- 
phone or  telegraph  systems  for  example — ^which  in- 
evitably involved  a  monopolistic  flavor.  With  these, 
as  he  understood  them,  the  last  words  of  the  resolu- 
tion were  intended  to  deal. 

In  order  to  meet  the  foregoing  comments,  espe- 
cially those  of  Sir  Auckland  Geddes,  Secretary 
Hughes,  at  the  next  (nineteenth)  meeting  of  the 
Committee  introduced  the  following  revised  draft 
resolution : 
15 


210  CHINA  AT  THE  CONFERENCE 

I.  With  a  view  to  applying  more  effectually  the  principle  of  the 
open  door,  or  equality  of  opportunity,  in  China  for  the  trade  and 
industry  of  all  nations,  the  powers  other  than  China  represented  at 
this  conference  agree: 

(a)  Not  to  seek  or  to  support  their  nationals  in  seeking  any 
arrangement  which  might  purport  to  establish  in  favor  of  their 
interests  any  general  superiority  of  rights  with  respect  to  com- 
mercial or  economic  development  in  any  designated  region  of  China. 

(b)  Not  to  seek  or  to  support  their  nationals  in  seeking  any  such 
monopoly  or  preference  as  would  deprive  other  nationals  of  the  right 
of  undertaking  any  legitimate  trade  or  industry  in  China  or  of 
participating  with  the  Chinese  Government  or  with  any  Provincial 
government  in  any  category  of  public  enterprise,  or  which  by  reason 
of  its  scope,  duration  or  geographical  extent  is  calculated  to  frustrate 
the  practical  application  of  the  principle  of  equal  opportunity. 

It  is  understood  that  this  agreement  is  not  to  be  so  construed  as  to 
prohibit  the  acquisition  of  such  properties  or  rights  as  may  be  neces- 
sary to  the  conduct  of  a  particular  commercial,  industrial,  or  finan- 
cial undertaking,  or  to  the  encouragement  of  invention  and  research. 

II.  The  Chinese  Government  takes  note  of  the  above  agreement, 
and  declares  its  intention  of  being  guided  by  the  same  principles  in 
dealing  with  applications  for  economic  rights  and  privileges  from 
Governments  and  nationals  of  all  foreign  countries  whether  parties 
to  that  agreement  or  not. 

III.  The  powers  including  China  represented  at  this  conference 
agree  in  principle  to  the  establishment  in  China  of  a  board  of  ref- 
erence, to  which  any  question  arising  on  the  above  agreement  and 
declaration  may  be  referred  for  investigation  and  report. 

(A  detailed  scheme  for  the  constitution  of  the  board  shall  be 
framed  by  the  special  conference  referred  to  in  Article  I  of  the  con- 
vention of  Chinese  customs  duties.) 

IV.  The  powers  including  China  represented  at  this  conference 
agree  that  any  provisions  of  an  existing  concession  which  appear 
inconsistent  with  those  of  another  concession  or  with  the  principles 
of  the  above  agreement  or  declaration  may  be  submitted  by  the 
parties  concerned  to  the  board  of  reference  when  established  for  the 
purpose  of  endeavoring  to  arrive  at  a  satisfactory  adjustment  on 
equitable  terms. 


THE  OPEN  DOOR  211 

As  to  the  distinction  between  clauses  (a)  and  (b) 
of  Section  I  of  the  Resolution,  Secretary  Hughes 
gave  an  explanation,  the  following  portions  of  which 
need  to  be  quoted.   He  said : 

The  two  clauses  (a)  and  (b),  were  of  course  consistent.  It  was 
intended  that  they  should  be  consistent  and  carry  an  application  of 
the  general  principle.  There  was,  however,  a  distinction  between 
them.  Clause  (a)  was  not  limited  to  the  mere  seeking  of  a  conces- 
sion which  might  be  in  the  nature  of  a  monopoly  or  preference  with 
respect  to  a  particular  sphere  of  enterprise;  it  had  a  wider  range. 
It  took  into  account  the  facts  with  which  all  were  familiar  in  con- 
nection with  the  recent  history  of  China.  It  provided  that  the 
powers  other  than  China  represented  at  the  conference  should  not 
seek,  nor  support  their  nationals  in  seeking,  any  arrangement  which 
might  purport  to  establish  in  favor  of  their  interests  any  general 
superiority  of  rights  with  respect  to  commercial  or  economic  devel- 
opment in  any  designated  region  of  China.  That  was  not  limited  to 
the  question  of  a  particular  concession  or  enterprise,  but  it  had  the 
purpose  of  precluding  the  efforts  by  which,  in  a  designated  region, 
one  power,  or  the  nationals  of  that  power,  might  have  a  superior 
position,  broadly  speaking,  with  respect  to  enterprises.  It  had  direct 
relation  to  what  had  been  known  in  the  past  as  spheres  of  interest, 
which  might  be  stated  to  be  spheres  of  exclusion  of  other  interests. 
In  order  words,  it  negatived  the  endeavor  to  secure  not  a  particular 
concession  or  grant,  or  the  facility  for  conducting  a  particular  enter- 
prise, whatever  the  scope  of  that  enterprise  might  be,  but  a  status 
with  respect  to  a  designated  region  which  would  give  general  superi- 
ority or  opportunity,  and  thus  conflict  with  the  open-door  principle. 

Now,  the  second  clause,  paragraph  (b),  dealt  with  cases  which 
did  not  rise  to  the  dignity  of  an  endeavor  to  obtain  a  general 
superiority  of  rights  with  respect  to  development  in  a  designated 
region,  but  with  the  more  limited,  yet  still  objectionable,  endeavor 
to  obtain  such  a  monopoly  or  preference  as  would  deprive  nationals 
of  other  powers  of  the  right  to  undertake  legitimate  trade  or 
industry  with  China  or  of  participating  with  the  Chinese  Govern- 
ment or  with  any  provincial  government  in  any  category  of  public 
enterprise  which,  by  reason  of  its  scope,  duration,  or  geographical 


212  CHINA  AT  THE  CONFEEENCE 

extent,  was  calculated  to  frustrate  the  practical  application  of  the 
principle  of  equal  opportunity. 

That  was  to  be  read  in  connection  with  the  concluding  clause  of 
the  first  section  of  the  resolution,  that  it  was  not  to  be  so  construed 
as  to  prohibit  the  acquisition  of  such  properties  or  rights  as  might 
be  necessary  to  the  conduct  of  a  particular  commercial,  industrial, 
or  financial  undertaking  or  to  the  encouragement  of  invention  and 
research.  That  was  to  say,  paragraph  (b)  sought  to  preclude 
efforts  by  which  monopolies  or  preferences  would  exclude  other 
nationals  from  legitimate  opportunity ;  it  did  not  intend  to  prevent 
particular  enterprises — commercial,  industrial,  or  financial — which 
did  not  have  that  unfair  exclusiveness  which  would  make  them  in- 
consistent with  the  open-door  principle. 

It  would  therefore  be  seen,  he  thought,  that  there  was  a  point  in 
each  of  these  paragraphs,  the  one  relating  to  a  general  superiority 
of  rights,  with  respect  to  development  in  designated  regions,  the 
other  relating  to  particular  concessions  which  had  a  monopolistic  or 
preferential  character  which,  by  reason  of  that  character,  infringed 
the  open-door  principle.  Neither  of  these  provisions  would  be  en- 
tirely satisfactory  without  the  other  as  its  complement 

In  connection  with  paragraphs  (a)  and  (b)  it  was  deemed  advis- 
able to  suggest  as  well  as  could  be  done  by  a  general  statement,  the 
class  of  undertakings  which  it  was  not  desired  to  exclude,  which  it 
was  desired  should  be  freely  prosecuted,  and  at  the  same  time  to 
indicate  the  two  classes  of  effort  which  it  was  designed  so  far  as 
possible  absolutely  to  prevent. 

The  first  class  included  those  which  endeavored  to  establish  over 
a  designated  region  a  superior  privilege  to  the  exclusion  of  powers 
or  their  nationals.  The  second  was  a  monopoly  or  preference  not 
inherent  in  a  particular  legitimate  undertaking,  but  embodying  the 
exclusion  of  powers  or  their  nationals  from  fields  of  industry  and 
economic  development.  There  was  in  paragraph  (b)  the  suggestion 
that  the  consideration  of  the  scope,  duration  or  geographical  extent 
itself  of  an  enterprise  might  be  very  important  in  determining  its 
essential  character  in  the  light  of  the  open-door  principle. 

And  again,  somewhat  later,  upon  this  same  point, 
Secretary  Hughes  said 


THE  OPEN  DOOR  213 

that,  as  he  understood  it,  the  concluding  paragraph  of  Article  I 
of  the  resolution  was  intended  to  protect  the  particular  commercial, 
industrial,  or  financial  undertakings  which  might  be  prosecuted  con- 
sistently with  the  maintenance  of  the  general  principle  which  was 
stated  in  paragraphs  (a)  and  (b).  Paragraph  (b)  referred  to  such 
undertakings  which,  by  reason  of  their  scope,  duration,  or  geo- 
graphical extent,  were  calculated  to  frustrate  the  practical  applica- 
tion of  the  principles  of  equal  opportunity. 

As  he  had  explained  the  day  before,  they  were  dealing  with  the 
open  door,  an  avenue  to  opportunity,  an  avenue  to  legitimate  enter- 
prise— and  not  with  obstacles  to  legitimate  enterprise ;  and  all  that 
was  embraced  in  the  various  undertakings  which,  to  the  extent  of 
the  particular  right  essential  to  their  prosecution,  of  course  monop- 
olized a  special  line  of  endeavor  in  a  concrete  or  particular  case, 
were  amply  protected  by  the  last  clause  of  the  first  article.  The 
purpose  was,  however,  to  safeguard  the  principle,  so  that  under  the 
guise  of  particular  undertakings  there  should  not  be  any  assertion 
of  a  general  superiority  of  right  or  a  monopoly  or  preference  which 
would  be  in  conflict  with  the  principles  to  which  the  powers  repre- 
sented on  the  committee  adhered. 

Regarding  the  scope  of  the  Open  Door  as  defined 
in  the  Resolution,  Sir  Auckland  Geddes,  in  the  twen- 
tieth meeting  of  the  Committee,  said  that  he  thought 
it  desirable  to  have  it  specifically  stated  that  the 
activities  of  such  a  body  as  the  International  Con- 
sortium would  not  be  excluded,  and,  therefore,  he 
asked  to  have  recorded  in  the  minutes  the  following 
statement : 

Of  course  it  is  clearly  understood  that  there  is  nothing  in  this 
Resolution  which  affects,  one  way  or  the  other,  the  existing  Inter- 
national Consortium  or  any  other  form  of  voluntary  cooperation 
among  private  financial  or  industrial  groups  of  different  countries 
which  may  join  together  in  a  manner  not  involving  monopoly  or 
infringement  of  the  principles  recognized  by  the  Conference  in  order 
to  furnish  China  with  some  essential  service  most  efficiently  and 
economically  to  be  provided  by  united  effort. 


214  CHINA  AT  THE  CONFERENCE 

Secretary  Hughes  said  that  this  statement  was  in 
full  accord  with  the  views  which  the  American  Dele- 
gation entertained :  * '  The  Resolution  was  not  in  any- 
way intended  to  interfere  with  the  operation  of  the 
Consortium,  which  in  its  provisions  for  cooperative 
effort  would  not  in  any  way  infringe  the  principles 
adopted  by  the  Conference." 

Reverting  to  the  provisions  of  Section  IV  of  the 
Resolution,  Baron  Shidehara,  at  the  twentieth  meet- 
ing of  the  Committee,  raised  the  point  that  the  Open 
Door  was  not  a  new  doctrine ;  that  it  had  been  previ- 
ously adopted  and  confirmed  in  various  treaties  and 
arrangements,  but,  since  its  original  statement  by 
Secretary  of  State  Hay  in  1899,  it  had  undergone 
considerable  changes  in  its  application.  He  con- 
tinued : 

It  was  then  limited  in  its  scope,  both  as  concerning  its  subject 
matter  and  the  area  of  Chinese  territory  to  which  it  applied;  it 
simply  provided,  in  substance,  that  none  of  the  powers  having 
spheres  of  influence  or  leased  territories  in  China  should  interfere 
with  treaty  ports  or  with  vested  rights  or  exercise  any  discrimina- 
tion in  the  collection  of  customs  duties  or  railroad  or  harbor  charges. 
The  principles  formulated  in  the  draft  resolution  was  (sic)  of  an  en- 
tirely different  scope  from  the  policy  of  "  the  open  door  *'  as  conceived 
in  1898-99 ;  the  draft  resolution  gave,  in  a  certain  sense,  a  new  defini- 
tion to  that  policy.  It  seemed  natural,  therefore,  that  this  new 
definition  should  not  have  any  retroactive  force. 

Baron  Shidehara  therefore  suggested  that  Section 
IV  of  the  Resolution  should  be  changed  so  as  to  read 
as  f  oUows : 

IV.  The  powers,  including  China,  represented  at  this  conference 
agree  that  if  any  provisions  of  a  concession  which  may  hereafter  be 
granted  by  China  appear  inconsistent  with  those  of  another  conces- 


THE  OPEN  DOOR  216 

sion  or  with  the  principles  of  the  above  agreement  or  declaration 
they  may  be  submitted  by  the  parties  concerned  to  the  board  of 
reference  when  established  for  the  purpose  of  endeavoring  to  arrive 
at  a  satisfactory  adjustment  on  equitable  terms. 

This  led  Secretary  Hughes  to  present  to  the  Com- 
mittee a  nimiber  of  international  documents  including 
the  Hay  correspondence  of  1899  and  the  Root- 
Takahira  exchange  of  notes  in  1908,  in  which  the 
Open  Door  doctrine  had  found  statement  and  appli- 
cation. 

**  In  the  light  of  these  reiterated  statements  which 
could  hardly  be  regarded  as  ambiguous,"  Secretary 
Hughes  said  that  he  **  could  not  assume  that  the 
statement  of  principles  recorded  in  the  Resolution 
before  the  Committee  was  a  new  statement.  He 
regarded  it  as  a  more  definite  and  precise  statement 
of  the  principle  that  had  long  been  admitted,  and  to 
which  the  Powers  concerned  had  given  their  imquali- 
fied  adherence  for  twenty  years." 

Board  of  Reference.  In  the  discussion  which  fol- 
lowed, it  appeared  that,  especially  as  voiced  by  M. 
Sarraut,  of  the  French  Delegation,  there  was  objec- 
tion upon  the  part  of  some  of  the  Powers  to  Section 
IV  which  provided  that  already  existing  concessions 
might  be  referred  to  the  Board  of  Reference  with  a 
view  to  determining  whether  they  were  consistent 
with  other  concessions  or  with  the  principle  of  the 
Open  Door  as  defined  in  the  Resolution. 

Baron  de  Cartier  expressed  the  opinion  that  the 
reference  in  Section  I  to  **  provincial  governments  " 
might  possibly  be  taken  as  a  reflection  upon  the  com- 
pleteness of  the  authority  of  the  central  Government 


216  CHINA  AT  THE  CONFEEENCE 

of  China,  and  the  term  **  local  authorities  "  was  sub- 
stituted. 

Regarding  the  Board  of  Reference  provided  for  by 
Section  III  of  the  draft  resolution  presented  by  him 
to  the  Committee  on  January  17,  Secretary  Hughes 
said  that  * '  it  did  not  constitute  a  board  with  authority 
to  decide;  it  did  not  establish  any  instrumentality 
with  anything  in  the  nature  of  powers,  the  exercise 
of  which  would  be  in  derogation  of  the  sovereignty 
or  the  freedom  of  any  State;  but  it  did  provide 
machinery  for  the  examination  of  facts  or,  as  the 
resolution  said,  for  investigation  and  report." 

At  the  twentieth  meeting  of  the  Committee,  held 
January  18,  Baron  Shidehara  raised  the  objection  to 
the  Board  of  Reference  that  it  would  be  necessary 
for  the  Powers  to  appoint  upon  it  their  ablest  jurists 
upon  whose  judgments  the  other  interested  Govern- 
ments could  rely,  and  that  this  would  mean  that 
these  jurists  would  have  to  remain  continuously  and 
for  an  indefinite  time  in  China.  As  a  practical  propo- 
sition, therefore,  he  queried  whether  the  Govern- 
ments would  be  willing  to  go  to  this  expense,  and 
whether  they  would  be  able  to  spare  from  their  own 
countries  such  able  and  first-rate  men. 

Responding  to  this.  Sir  Auckland  Geddes  said  that 
what  the  British  Empire  Delegation  had  in  mind  for 
the  Board  was  that  it  would  not  be  necessary  for  the 
representatives  of  all  the  Powers  to  attend  all  the 
meetings  of  the  Board,  but  that  each  Power  should 
nominate  a  panel  of  jurists  from  which  two,  three, 
four,  or  whatever  number  desired,  could  be  drawn  as 
required,  to  constitute  the  Board  for  the  considera- 


THE  OPEN^  DOOR  217 

tion  of  any  special   case   that  might   be  brought 
before  it. 

Secretary  Hughes  pointed  out  that  the  Resolution 
provided  that  the  detailed  scheme  for  the  constitution 
of  the  Board  was  to  be  framed  by  the  Special  Con- 
ference referred  to  in  Section  I  of  the  Resolution,  and 
that,  no  doubt,  that  Conference  would  give  due  con- 
sideration to  the  points  raised  by  Sir  Auckland  and 
Baron  Shidehara. 

Sir  Robert  Borden  said  that  he  was  not  of  opinion 
that  the  Board  should  be  composed  of  jurists. 
Rather,  he  thought,  it  should  be  composed  of  persons 
having  a  knowledge  of  economic  conditions,  a  knowl- 
edge of  the  conditions  of  China  and  the  trade  of 
China.  Sir  Robert  Borden  observed  that  the  princi- 
pal difficulty  in  connection  with  the  proposed  Resolu- 
tion had  reference  to  Section  IV.  He,  however,  was 
of  opinion  that  the  Powers  concerned  could  act  with 
equal  effect  if  that  Section  were  omitted  altogether. 
**  Under  that  Article,"  he  said,  **  there  could  be  no 
effective  action  except  with  the  consent  of  the  parties 
concerned.  If  the  fourth  article  were  omitted  it 
would  still  be  open  to  the  Powers,  if  they  saw  fit,  to 
give  the  like  consent  and  to  utilize  for  the  determina- 
tion or  investigation  of  any  relevant  question  the 
Board  of  Reference  to  be  established  under  Article 
III." 

It  appearing  that  several  of  the  other  Delegations 
supported  this  proposition  of  Sir  Robert  Borden, 
Secretary  Hughes  said  that,  in  view  of  this  fact,  and 
of  the  fact  that  Article  III  gave  full  opportunity  for 
dealing  with  all  matters  which  might  appropriately 


218  CHINA  AT  THE  CONFERENCE 

be  the  concern  of  the  respective  Governments,  the 
American  Delegation  would  withdraw  Article  IV 
from  its  draft  Resolution. 

Chinese  Statement.  Expressing  the  general  atti- 
tude of  the  Chinese  Delegation  towards  the  proposed 
Resolution,  Mr.  Sze  said: 

He  could  do  nothing  better  than  to  refer  to  the  second  of  the 
proposals  presented  by  the  Chinese  Delegation  on  November  16, 
namely :  "  China,  being  in  full  accord  with  the  principle  of  the 
open  door  or  equal  opportunity  for  the  commerce  and  industry  of 
all  nations  having  treaty  relations  with  China,  is  prepared  to  accept 
and  apply  it  in  all  parts  of  the  Chinese  Republic  without  exception." 
In  this  proposal  the  position  of  the  Chinese  delegation  was  put  very 
simply  and  clearly,  and  he  did  not  believe  there  was  any  use  in  his 
taking  up  the  committee's  time  by  offering  any  further  explanation 
of  it. 

He  desired,  however,  to  say  one  word  in  regard  to  "  the  open  door." 
The  rendering  of  that  expression  into  Chinese,  some  years  ago,  had 
given  rise  to  some  doubt  in  the  minds  of  those  who  only  read  Chinese. 
He  would,  therefore,  like  to  state  that  "  the  open  door  "  did  not 
mean  the  opening  up  of  all  parts  of  China  to  foreign  trade,  com- 
merce, and  industry;  he  only  said  this  because  of  the  misappre- 
hension in  the  matter  which  had  existed  in  China. 

In  regard  to  Article  I  b,  his  esteemed  colleague.  Baron  de  Cartier, 
had  suggested  on  the  previous  day  that  the  words  "  provincial  gov- 
ernment "  be  changed  to  "  local  authority."  The  procedure  at 
present  observed  in  China  by  the  central  Government  with  reference 
to  concessions  given  by  provincial  authorities,  he  stated,  would 
remain  the  same  irrespective  of  which  phrase  was  used,  and  this 
practice  was  too  well  known  to  need  further  elucidation. 

In  regard  to  Article  III  he  wondered  whether  it  would  not  be 
better  to  eliminate  the  words  "  in  principle."  If  the  committee 
reached  an  agreement  it  was  probable  that  it  would  be  on  something 
definite.  He  only  made  this  as  a  suggestion  in  the  belief  that  it 
would  make  the  paragraph  more  clear. 


THE  OPEN  DOOR  219 

He  had  remarked  a  few  minutes  before  on  the  great  importance 
of  the  principle  of  "  the  open  door/'  which  had  also  been  dealt  with 
in  the  third  of  the  "  Root  Resolutions  "  as  follows : 

"  To  use  their  influence  for  the  purpose  of  effectually  establish- 
ing and  maintaining  the  principle  of  equal  opportunity  for  the  com- 
merce and  industry  of  all  nations  throughout  the  territory  of  China." 

The  committee  would  note  that  in  this  resolution — which  had  been 
accepted  by  all  the  powers  represented  at  the  table — that  the  words 
"  establishing  and  maintaining  "  were  used.  His  knowledge  of  En- 
glish was  limited,  but  he  thought  that  the  two  words  had  different 
meanings — to  establish,  meaning  to  create,  and  to  maintain,  mean- 
ing to  continue  in  operation ;  taken  together,  these  two  undertakings 
could  mean  nothing  else  than  the  bringing  into  existence  of  a 
regime  under  which  the  principles  of  the  "  open  door "  could  be 
effectually  applied.  It  therefore  seemed  that  Section  IV  of  the  draft 
resolution  could  safely  be  adopted.  Questions  in  regard  to  conces- 
sions had  arisen  in  the  past  and  would  doubtless  arise  in  the  future. 
If  questions  should  arise  in  the  future  it  would  be  better,  as  the 
chairman  had  remarked,  that  the  negotiations  among  the  powers 
should  not  be  confined  to  diplomatic  notes ;  it  would  do  no  harm  to 
either  party  in  such  a  dispute  to  have  it  referred  to  a  friendly  body 
such  as  was  provided  for  in  Section  IV  for  adjustment. 

The  Committee  then  imanimously  approved  the 
three  articles  of  the  Resolution  in  the  following 
words,  which  later,  with  only  the  necessary  verbal 
changes  in  order  to  put  them  in  treaty  form,  were 
incorporated  into  the  Nine  Power  Treaty  Relating 
to  the  Principles  and  Policies  to  be  Followed  in  Mat- 
ters Concerning  China,  signed  on  February  sixth; 

I.  With  a  view  to  applying  more  effectually  the  principle  of  the 
Open  Door  or  equality  of  opportunity  in  China  for  the  trade  and 
industry  of  all  nations,  the  Powers  other  than  China  represented  at 
this  Conference  agree : 

(a)  Not  to  seek  or  to  support  their  nationals  in  seeking  any 
arrangement    which  might  purport  to  establish  in  favor  of  their 


220  CHINA  AT  THE  CONFERENCE 

interests  any  general  superiority  of  rights  with  respect  to  com- 
mercial or  economic  development  in  any  designated  region  of  China ; 

(b)  Not  to  seek  or  to  support  their  nationals  in  seeking  any  such 
monopoly  or  preference  as  would  deprive  other  nationals  of  the  right 
of  undertaking  any  legitimate  trade  or  industry  in  China,  or  of 
participating  with  the  Chinese  Government  or  with  any  local  au- 
thority in  any  category  of  public  enterprise,  or  which  by  reason  of 
its  scope,  duration  or  geographical  extent  is  calculated  to  frustrate 
the  practical  application  of  the  principle  of  equal  opportunity. 

It  is  understood  that  this  agreement  is  not  to  be  so  construed  as  to 
prohibit  the  acquisition  of  such  properties  or  rights  as  may  be  neces- 
sary to  the  conduct  of  a  particular  commercial,  industrial  or  financial 
undertaking  or  to  the  encouragement  of  invention  and  research. 

II.  The  Chinese  Government  takes  note  of  the  above  agreement 
and  declares  its  intention  of  being  guided  by  the  same  principles  in 
dealing  with  applications  for  economic  rights  and  privileges  from 
governments  and  nationals  of  all  foreign  countries  whether  parties 
to  that  agreement  or  not. 

III.  The  powers,  including  China,  represented  at  this  conference 
agree  in  principle  to  the  estabhshment  in  China  of  a  board  of  ref- 
erence to  which  any  question  arising  on  the  above  agreement  and 
declaration  may  be  referred  for  investigation  and  report. 

(A  detailed  scheme  for  the  constitution  of  the  board  shall  be 
framed  by  the  special  conference  referred  to  in  Article  I  of  the  Con- 
vention on  Chinese  Customs  Duties.) 

At  the  last  (thirty-first)  meeting  of  the  Committee 
of  the  Whole  at  which  the  draft  of  the  various  treaties 
were  given  final  consideration  before  being  printed 
preparatory  to  their  submission  for  formal  approval 
by  the  Conference  in  plenary  session,  Dr.  Koo  said 
that  he  understood,  and  he  was  confirmed  in  his 
understanding  by  the  Chairman,  that  the  principle  of 
equal  opportunity  as  provided  for  in  the  contem- 
plated treaty  had  reference  to  the  Powers  among 
themselves  and  not  to  China  upon  the  one  side  and 
the  Powers  upon  the  other. 


THE  OPEN  DOOR  221 

The  relation  of  the  Open  Door  to  the  Chinese  Rail- 
ways is  discussed  in  the  next  chapter.' 


*  For  purposes  of  convenience  it  will  be  appropriate  to  quote  the  follow- 
ing excerpts  from  the  other  agreements  reached  by  the  Conference  in  which 
the  Open  Door  doctrine  is  expressly  declared  or  applied: 

Nine  Power  Treaty  Relating  to  Principles  and  Policies  to  he  Followed  in 
Matters  Concerning  China.  Article  I,  Section  3.  "  The  Contracting  Pow- 
ers, other  than  China,  agree  ,  ...  To  use  their  influence  for  the  purpose 
of  effectually  establishing  and  maintaining  the  principle  of  equal  oppor- 
tunity for  the  commerce  and  industry  of  all  nations  throughout  the  terri- 
tory of  China." 

Article  V.  "  China  agrees  that,  throughout  the  whole  of  the  railways  in 
China,  she  will  not  exercise  or  permit  unfair  discrimination  of  any  kind. 
In  particular  there  shall  be  no  discrimination  whatever,  direct  or  indirect, 
in  respect  of  charges  or  of  faciUties  on  the  ground  of  the  nationality  of 
passengers  or  the  countries  from  which  or  to  which  they  are  proceeding,  or 
the  origin  or  ownership  of  goods  or  ♦he  country  from  which  or  to  which 
they  are  consigned,  or  the  nationaUty  or  ownership  of  the  ship  or  other 
means  of  conveying  such  passengers  or  goods  before  or  after  their  transport 
on  the  Chinese  Railways. 

"  The  Contracting  Powers,  other  than  China,  assume  a  corresponding 
obhgation  in  respect  of  any  of  the  aforesaid  railways  over  which  they  or 
their  nationals  are  in  a  position  to  exercise  any  control  in  virtue  of  any 
concession,  special  agreement  or  otherwise. 

Nine  Power  Treaty  Relating  to  Chinese  Customs  Tariff.  Article  V. 
"  In  all  matters  relating  to  customs  duties  there  shall  be  effective  equality 
of  treatment  and  opportunity  for  all  the  Contracting  Powers." 

Resolution  Regarding  a  Board  of  Reference.  Preamble.  [The  Nine 
Powers]  ....  with  reference  to  their  general  policy  designed  to  stabiUze 
conditions  in  the  Far  East,  to  safeguard  the  rights  and  interests  of  China, 
and  to  promote  intercourse  between  China  and  the  other  Powers  upon  the 
basis  of  equality  of  opportunity  "  resolve,  etc. 

Declaration  Concerning  the  Resolution  on  Radio  Stations  in  China. 
The  Powers  other  than  China  ....  give  notice  that  the  result  of  any 
diaciission  arising  under  pargraph  4  must,  if  it  is  not  to  be  subject  to  ob- 
jection by  them,  conform  with  the  principles  of  the  open  door  or  equality 
of  opportunity  approved  by  the  Conference." 

Statement  of  Chinese  Delegation  Regarding  Chinese  Railways.  "  .... 
It  will  be  our  policy  to  obtain  such  foreign  financial  and  technical  assis- 
tance as  may  be  needed  from  the  Powers  in  accordance  with  the  principles 
of  the  Open  Door  or  equal  opportunity." 


CHAPTER  XVII 
Chinese  Railways  and  the  Open  Door 


Unification  of  Railways.  There  had  been  some 
expectation  that  the  Powers  would  discuss  their 
future  policies  with  regard  generally  to  the  railways 
of  China,  and  especially  as  to  the  amount  and  char- 
acter of  the  foreign  control  over  their  administration 
and  operation  that  should  be  sanctioned.  In  fact, 
however,  the  only  direct  reference  to  this  important 
subject  was  the  resolution  that  Secretary  Hughes 
presented  to  the  Committee  of  the  Whole  at  its 
twentieth  meeting,  and  adopted  at  its  twenty-first 
meeting.    This  resolution  ran : 

The  powers  represented  in  this  conference  record  their  hope  that 
to  the  utmost  degree  consistent  with  legitimate  existing  rights,  the 
future  development  of  railways  in  China  shall  be  so  conducted  as  to 
enable  the  Chinese  Government  to  effect  the  unification  of  railways 
into  a  railway  system  under  Chinese  control,  with  such  foreign  finan- 
cial and  technical  cooperation  as  may  prove  necessary  in  the  interests 
of  that  system.^ 

Mr.  Sze  stated  the  position  of  the  Chinese  Delega- 
tion regarding  this  resolution  as  follows : 

The  Chinese  Delegation  notes  with  sympathetic  appreciation  the 
expression  of  the  hope  of  the  Powers  that  the  existing  and  future 
railways  of  China  may  be  unified  under  the  control  and  operation 

*  At  Mr.  Sze's  suggestion  the  word  "  cooperation  "  in  the  last  clause  was 
changed  to  "  assistance."  This  change  Mr.  Sze  said,  would  facilitate  the 
rendering  of  the  resolution  into  the  Chinese  language. 

222 


CHINESE  RAILWAYS  223 

of  the  Ckinese  Government  with  such  financial  and  technical  assis- 
tance as  may  be  needed.  It  is  our  intention  as  speedily  as  possible 
to  bring  about  this  result.  It  is  our  purpose  to  develop  existing  and 
future  railways  in  accordance  with  a  general  programme  that  will 
meet  the  economic,  industrial  and  commercial  requirements  of 
China.  It  will  be  our  policy  to  obtain  such  foreign  financial  and 
technical  assistance  as  may  be  needed  from  the  Powers  in  accordance 
with  the  principles  of  the  Open  Door  or  equal  opportunity ;  and  the 
friendly  support  of  these  Powers  will  be  asked  for  the  effort  of  the 
Chinese  Government  to  bring  all  the  railways  of  China,  now  existing 
or  to  be  built,  under  its  effective  and  unified  control  and  operation. 

The  resolution  was  adopted  by  the  Conference  at 
its  fifth  plenary  session,  held  February  1. 

The  Open  Door  and  the  Chinese  Railways.     The 

only  other  consideration  given  by  the  Conference  to 
the  Chinese  Railways  was  with  reference  to  the  appli- 
cation to  them  of  the  principles  of  the  Open  Door 
which  the  Conference  adopted. 

At  the  twentieth  meeting  of  the  Committee  of  the 
Whole,  when  the  matter  of  the  Open  Door  was  under 
discussion.  Sir  Auckland  Geddes  submitted  a  resolu- 
tion which  took  the  form  of  a  statement  which  China 
was  asked  to  make,  and  of  an  adhering  or  agreeing 
statement  by  the  other  Powers.  This  resolution,  as 
later  slightly  amended  by  Sir  Auckland,  came  up  for 
discussion  at  the  twenty-first  meeting  of  the  Com- 
mittee in  the  following  form: 

The  Chinese  Government  declares  that  throughout  the  whole  of 
the  railways  in  China  it  will  not  exercise  or  permit  any  unfair  dis- 
crimination of  any  kind.  In  particular  there  shall  be  no  discrimina- 
tion whatever,  direct  or  indirect,  in  respect  of  charges  or  of  facilities 
on  the  ground  of  the  nationality  of  passengers  or  the  countries  from 
which  or  to  which  they  are  proceeding,  or  the  origin  or  ownership  of 
goods  or  the  country  from  which  or  to  which  they  are  consigned,  or 


224  CHINA  AT  THE  CONFERENCE 

the  nationality  or  ownership  of  the  ship  or  other  means  of  conveying 
such  passengers  or  goods  before  or  after  their  transport  on  the 
Chinese  railways. 

The  other  powers  represented  at  this  conference  take  note  of  the 
above  declaration  and  make  a  corresponding  declaration  in  respect 
of  any  of  the  aforesaid  railways  over  which  they  or  their  nationals 
are  in  a  position  to  exercise  any  control  in  virtue  of  any  concession, 
special  agreement,  or  otherwise. 

Any  question  arising  under  this  declaration  may  be  referred  by 
the  powers  concerned  to  the  board  of  reference,  when  established  for 
consideration  and  report. 

In  moving  this  resolution,  Sir  Auckland  said  that 
the  British  Delegation  were  animated  by  a  desire  to 
make  the  Open  Door  effective,  but  that  there  was  no 
suggestion  whatever  that  the  past  policy  of  the  Gov- 
ernment of  China  included  any  policy  of  discrimiiia- 
tion  on  any  ground.  He  wished  to  make  that  quite 
clear. 

Mr.  Sze,  responding  for  the  Chinese  Delegation, 
said  that  **  it  had  always  been  the  policy  of  the 
Chinese  Government — a  policy  that  was  well-known 
and  the  whole  idea  of  which  was  to  develop  foreign 
trade — to  welcome  foreign  shippers  or  passengei*s 
and  to  afford  them  equal  treatment."  He  added  that 
he  had  never  heard  of  a  complaint  upon  the  part  of 
any  shipper  of  luifair  or  discriminating  treatment. 
As  to  the  third  paragraph,  he  hoped  that  there  would 
be  no  occasion  to  resort  to  it.  In  order  to  avoid  any 
possible  future  misunderstandings  he  wished  it  to  be 
noted  that  China,  in  giving  her  assent  to  the  first 
paragraph,  reserved  to  herself  the  right  to  classify 
the  rates  on  any  of  her  railways.  Secretary  Hughes 
said  that  he  understood  that  there  was  nothing  in  the 


CHINESE  RAILWAYS  225 

resolution  that  would  limit  this  right,  "  subject 
simply  to  the  qualification — with  the  explanation  that 
it  was  not  suggested  on  the  basis  that  China  had 
hitherto  acted  in  a  discriminating  way — ^that  there 
should  be  no  unfair  discrimination  of  any  kind  and 
particularly  no  discrimination  on  the  basis  stated  in 
the  resolution." 

The  resolution  was  then  unanimously  approved  by 
the  Committee  with  the  single  amendment  (suggested 
by  Mr.  Sze)  that  the  words  ''  any  of  "  should  be 
inserted  before  the  words  "  the  powers  "  in  the  third 
paragraph. 

At  the  fifth  plenary  session  of  the  Conference  at 
which  this  resolution  was  adopted,  Mr.  Sze  repeated 
the  statements  which  he  had  made  in  the  Committee. 
He  also  added: 

China  took  note  but  did  not  vote  on  the  first  article  of  the  resolu- 
tions on  Open  Door  adopted  by  the  Committee  on  January  18,  1922, 
defining  and  declaring  acceptance  by  the  Powers  of  the  principle  of 
the  Open  Door,  since  the  purpose  of  that  article  of  the  Resolution 
was  to  fix  the  policies  of  the  Powers  in  their  dealings  with  China  or 
with  each  other  with  reference  to  China.  That  China  was  not  in- 
tended to  be  included  within  the  scope  of  the  Resolution.  It  was 
not  the  purpose  of  that  Resolution  to  interfere  with  the  appropriate 
relations  between  the  Chinese  Government  and  its  nationals,  as  was 
expressly  indicated  by  the  Chairman  in  replying  to  a  question  from 
Sir  Auckland  Geddes.  However,  as  indicated  by  the  second  of  the 
Ten  Principles  or  Declarations  which  the  Chinese  Delegation  had 
the  honor  to  submit  to  this  Conference  on  November  16,  1921,  the 
Government  of  China  is  glad  to  give  the  assurance  that,  in  the  future, 
as  it  has  consistently  done  in  the  past,  it  will  make  no  discrimina- 
tions in  trade  or  industry  between  the  Powers  having  treaty  relations 
with  China,  or  between  their  respective  citizens  or  subjects  because 
of  their  nationality. 

16 


CHAPTER  XVIII 
The  Chinese  Eastern  Railway 


Upon  the  Agenda  of  the  Conference  appeared  the 
following  item : 

(c)  Development  of  railways,  including  plans  relating  to  Chinese 
Eastern  Railway. 

This  topic  was  reached  at  the  twentieth  meeting  of 
the  Committee  of  the  Whole,  held  January  18,  and 
was  introduced  by  the  Chairman,  Secretary  Hughes, 
with  the  statement  that  he  assumed  that  the  Dele- 
gates had  before  them  the  documentary  history  of  the 
Chinese  Eastern  Railway  and  that  they  were  convers- 
ant with  the  problems  relating  to  the  proper  and  effi- 
cient management  of  that  important  line  of  communi- 
cation. So  far  as  the  United  States  were  concerned, 
he  said,  there  was  but  one  interest  and  that  was  that 
the  railway  should  be  maintained  as  an  artery  of  com- 
merce, with  free  opportunity  to  all  and  unfair  dis- 
crimination against  none.  The  United  States  Gov- 
ernment had  no  interest  whatever  in  the  ownership 
of  the  road  and  had  no  desire  to  secure  control.  It 
wished,  however,  to  do  anything  within  its  power  to 
promote  the  proper  conduct  of  the  road  as  one  of  the 
greatest  instrumentalities  of  commerce  in  the  East. 

Because  of  the  complexity  of  the  existing  situation 
of  the  road,  Secretary  Hughes  suggested  that  the 
matter  be  referred  to  a  sub-committee  of  experts  to 
226 


CHINESE  EASTERN  RAILWAY  227 

be  drawn  from  the  technical  advisers  of  the  various 
Delegations.  This  suggestion  was  agreed  to  by  the 
Committee. 

Report  of  Technical  Committee.  The  report  of  this 
Technical  Sub-Committee  is  worthy  of  reproduction 
here  since  it  sets  forth  the  nature  of  the  problems 
arising  in  connection  with  the  Chinese  Eastern  Rail- 
way, as  well  as  the  recommendations  that  were  made 
for  their  solution. 

The  Chinese  Eastern  Railway  being  an  indispensable  factor  in 
the  economic  development  of  Siberia,  as  well  as  Northern  Man- 
churia, and  constituting  an  essential  link  in  a  trans-continental  rail- 
way system  of  international  importance,  the  nations  represented  at 
this  Conference  are  interested  in  its  preservation,  its  efficient  opera- 
tion, and  its  maintenance  as  a  free  avenue  of  commerce,  open  to 
the  citizens  of  all  countries  without  favor  or  discrimination. 

The  status  of  the  Chinese  Eastern  Railway  is  determined  by  the 
contract  concluded  in  1896  between  China  and  the  Russo-Chinese 
(Russo-Asiatic)  Bank  and  the  contract  concluded  in  1898  between 
China  and  the  Chinese  Eastern  Railway  Company,  and  subsequent 
contracts  between  China  and  that  company.  The  necessary  funds 
for  its  construction  were  furnished  by  the  Russian  Government  and 
it  was  built  under  the  direction  and  supervision  of  that  Government, 
acting  through  the  Chinese  Eastern  Railway  Company.  The  rail- 
way is  in  effect  the  property  of  the  Russian  Government.  China  has 
certain  ultimate  reversionary  rights  which  are  provided  for  in  the 
original  contract  of  1896. 

The  absence  of  a  recognized  Russian  Government  since  1917  has 
made  imperative  for  some  time  past  certain  measures  providing  for 
the  preservation  and  continued  operation  of  the  railway.  Early  in 
1919 — as  a  consequence  of  assistance  which  had  been  given  to 
Russia,  at  her  request,  in  the  operation  of  the  entire  trans-Siberian 
system,  including  the  Chinese  Eastern  Railway — certain  Powers, 
which  are  represented  at  this  Conference,  undertook  to  continue  this 
assistance  upon  definite  terms.    An  agreement  was  concluded  in 


228  CHINA  AT  THE  CONFERENCE 

January,  1919,  between  the  United  States  and  Japan,  under  the 
terms  of  which  China,  France,  Great  Britain  and  Italy  subsequently 
cooperated.  The  fundamental  purpose  of  the  arrangement  thus 
brought  about  was  explicitly  declared  to  be  the  temporary  operation 
of  the  railways  in  question  with  a  view  to  their  ultimate  return  to 
those  in  interest  without  the  impairing  of  any  existing  rights. 

The  trusteeship  thus  assumed  continues  in  force.  Changes  which 
have  intervened  since  1919  render  necessary  readjustments  in  its 
mode  of  operation. 

The  three  principal  problems  are:  1.  Finance;  2.  Operation; 
3.  Police. 

1.  As  to  the  first,  it  is  to  be  observed  that  funds  will  be  obtainable 
from  bankers  and  other  outside  sources  only  if  suitable  conditions 
are  established  for  the  economical  operation  of  the  railway  and  if 
the  funds  provided  are  to  be  expended  under  adequate  supervision. 
A  suitable  manner  of  providing  such  supervision,  in  the  opinion  of 
the  Committee,  would  be  to  establish  at  Harbin  a  Finance  Com- 
mittee, to  consist  of  one  representative  of  each  of  the  Powers  repre- 
sented at  the  Conference  (so  far  as  they  might  care  to  participate.) 
This  Committee  would  replace  the  so-called  Interallied  Committee 
now  established  at  Vladivostok  and  the  so-called  Technical  Board  at 
Harbin.  It  should  exercise  general  financial  control  and  be  en- 
trusted with  the  exercise  of  the  trusteeship  which  was  assumed  in 
1919  and  which  cannot  be  discharged  until  the  general  recognition 
by  the  Powers  of  a  Russian  Government. 

2.  As  to  operation,  in  order  to  disturb  as  little  as  possible  the 
normal  situation,  this  should,  in  the  opinion  of  the  Committee,  be 
left  in  the  hands  of  the  Chinese  Eastern  Railway  Company,  the 
Finance  Committee  not  to  interfere  with  the  technical  operation  of 
the  railway,  except  so  far  as  may  be  necessary  to  meet  the  conditions 
stated  in  the  first  sentence  of  paragraph  1. 

3.  The  protection  of  the  railway  property  and  the  maintenance  of 
public  order  within  the  railway  zone  are  of  fundamental  importance. 
In  order  to  assure  these,  it  is  necessary  to  provide  a  dependable  and 
effective  police  force  or  gendarmerie.  As  the  railway  zone  lies 
within  Chinese  territory,  this  could  be  made  to  consist,  if  China  so 
desired,  of  Chinese ;  but  it  would  be  essential,  in  the  opinion  of  the 


CHINESE  EASTERN  EAILWAY  229 

Committee,  that — as  a  temporary  and  exceptional  measure,  justified 
alike  by  existing  conditions  and  the  precedent  of  a  Russian  guard — 
this  police  or  gendarmerie  should  be  paid  by  and  remain  under  the 
control  of  the  Finance  Committee,  as  this  body  would  be  responsible 
under  the  trusteeship  for  the  preservation  of  the  property  of  the 
railway  and  the  maintenance  of  conditions  suitable  to  unhampered 
operation. 

Observations  and  Reservations  Made  hy  Dr.  Hawkling  Yen,  Chin- 
ese Representative  of  the  Sub-Committee  on  the  Chinese  Eastern 
Railway.  In  view  of  the  great  importance  attached  by  the  Chinese 
Government  to  the  Chinese  Eastern  Railway  and  in  view  of  some 
points  in  the  Report  in  which  he  regretted  that  he  was  unable  to 
concur,  the  Chinese  Representative  on  this  Sub-Committee  was  con- 
strained, with  the  permission  of  the  Chairman  of  the  Sub-Com- 
mittee, to  make  a  few  observations  and  reservations. 

The  construction  of  this  Railway  by  the  Russians  was  obviously 
for  a  strategic  purpose  and  therefore  political  in  nature.  The  very 
fact  that  this  line  runs  through  the  Chinese  territory  gives  to  China 
additional  interest  peculiar  to  that  country  alone.  For  its  construc- 
tion the  Chinese  Government  paid  the  sum  of  5,000,000  Kuping  taels 
to  the  Russo-Chinese  Bank,  and  the  Railway  Company  was  to  pay  the 
Chinese  Government  a  sum  of  5,000,000  Kuping  taels  upon  the 
completion  of  the  Railway,  which  still  remains  unpaid. 

The  recent  political  disorder  in  Russia  necessitated  the  conclusion 
of  an  agreement  by  which  the  Chinese  Government  for  the  time 
being  undertook  to  assume  the  responsibilities  on  behalf  of  Russia 
respecting  the  Railway  in  the  similar  manner  as  the  Chinese  Govern- 
ment has  done  with  respect  to  the  Russian  Concessions  in  Tientsin 
and  Hankow.  It  should  be  understood  that  in  doing  so  China  did 
not  intend  to  seek  any  undue  advantage  out  of  the  present  situation 
in  Russia  but  rather  to  exercise  the  rights  of  a  sovereign  state  within 
whose  territory  the  Railway  runs  and  also  because  of  the  deep  interest 
in  which  she  is  involved. 

It  may  also  be  observed  that  the  Agreement  made  in  1919  among 
Six  Powers  referred  to  in  the  Report  was  expressly  stated  to  be  a 
temporary  arrangement  and  was  to  come  to  an  end  when  the  foreign 
military  forces  were  withdrawn  from  Siberia. 


230  CHINA  AT  THE  CONFEEENCE 

Of  the  three  measures  proposed  in  the  Eeport,  the  Chinese  Repre- 
sentative found  it  very  difficult  to  agree  to  the  measures  1  and  3. 
With  respect  to  measure  1,  in  view  of  the  existing  administrative 
organization  and  operation,  he  felt  that  it  would  be  very  difficult  for 
China  to  agree  to  the  general  financial  control  and  the  exercise  of 
trusteeship  as  stated  in  the  Report,  and  with  respect  to  measure  3, 
he  doubted  the  propriety,  not  to  say  the  advisability,  of  putting 
Chinese  police  or  gendarme  under  a  mixed  committee  as  proposed 
to  be  set  up,  as  the  police  or  gendarme  is  a  State  force.  In  this  con- 
nection, it  may  also  be  pointed  out  that  the  precedent  of  a  Russian 
guard  has  no  legal  ground  as  it  was  expressly  stipulated  in  the 
Agreement  of  1896  that  it  was  the  Chinese  Government  which  was 
to  take  measures  to  assure  the  safety  of  the  Railway  and  of  the 
persons  in  its  service.  Under  such  circumstances,  the  Chinese  Rep- 
resentative had  to  make  reservations  with  respect  to  these  two 
measures. 

However,  in  making  these  remarks,  the  Chinese  Representative 
does  not  wish  to  be  understood  that  he  is  not  aware  of  the  fact  there 
is  room  for  improvement  with  respect  to  this  Railway.  He  is  of 
the  opinion  that  the  Chinese  Government  will  welcome  friendly 
assistance  of  foreign  Powers  and  may  be  prepared  to  discuss  matters 
regarding  the  technical  and  financial  aspects  of  the  Railway  in  so 
far  as  not  inconsistent  with  the  recognition  of  its  political  rights. 

Resolution  Adopted.  Inasmuch  as  it  appeared 
from  this  report  that  there  were  important  points  of 
disagreement  between  the  technical  experts  upon  the 
sub-committee,  Secretary  Hughes  suggested  that  the 
Committee  of  the  Whole  appoint  from  among  its  own 
members  a  new  sub-committee  as  delegates  with  the 
responsibility  of  plenipotentiary  representatives  of 
the  Powers,  to  see  if  an  agreement  could  not  be 
reached.  This  suggestion  was  accepted  by  the  Com- 
mittee, and  the  new  sub-committee  created. 

In  the  discussions  of  this  committee  it  proved  im- 
possible to  meet  various  points  raised  by  the  Japanese 


CHINESE  EASTERN  RAILWAY  231 

representative,  Mr.  Hanihara.  While  admitting  that 
the  Chinese  Eastern  Railway  was  a  Chinese  chartered 
corporation,  he  denied  that  the  railway  was  Chinese 
property,  and  said  that  his  Delegation  could  not  dis- 
cuss the  question  upon  that  basis.  Furthermore,  he 
questioned  the  right  of  the  Conference  to  discuss  and 
determine  the  treaty  and  other  contractual  rights 
involved,  and  contended  that  the  whole  situation  could 
be  considered  only  upon  a  de  facto  basis  of 
expediency. 

At  the  close  of  the  first  meeting  of  this  Committee 
Dr.  Koo  and  M.  Kanomerer  were  deputed  to  prepare, 
if  possible,  a  report  that  would  reconcile  the  various 
views  that  had  been  advanced.  This  report,  which 
they  made  at  the  second  meeting,  after  reciting  cer- 
tain facts  by  way  of  a  preamble,  went  on  to  declare 
that  it  was  desirable  that  the  terms  of  the  accord  of 
January,  1919,  should  be  amended,  with  the  result 
that  the  Technical  Commission  should  replace  the 
instrumentalities  instituted  in  1919,  and  that  it  should 
also  be  authorized  to  counsel  and  aid  the  president 
and  council  of  the  directors  of  the  Far  Eastern  Rail- 
way and  of  the  Ussuri  Railway  respectively  in  the 
making  of  loans,  and  to  supervise  the  expenditure  of 
the  funds  thus  obtained.  By  this  proposed  agree- 
ment, China  was  to  furnish  a  sufficient  force  of  gen- 
darmerie, with  modem  equipment  and  instruction  for 
the  protection  of  the  Chinese  Eastern  Railway,  this 
force  to  be  paid  for  by  the  Railway. 

To  these  proposals  Mr.  Hanihara  raised  the  objec- 
tion that  an  amendment  of  the  Inter  Allied  Accord 
could  properly  be  effected  only  by  the  parties  to  that 


232  CHINA  AT  THE  CONFERENCE 

Accord.  He  also  insisted  that,  if  the  Technical  Com- 
mission were  to  have  financial  powers,  its  name  should 
be  changed  to  Financial  Commission.  He  concluded 
by  saying  that  the  subject  was  a  complicated  one  and 
that  he  desired  more  time  for  consideration.  It  was 
then  proposed  by  the  chairman  of  the  committee  and 
agreed  to,  that  Dr.  Koo,  M.  Kammerer  and  Mr. 
Hanihara  should  constitute  a  sub-committee  to  see 
if  a  resolution  could  not  be  drafted  to  which  a  unani- 
mous approval  could  be  given  and  reported  to  the 
Conference. 

This  plan  also  proved  futile.  The  Japanese  repre- 
sentative remained  imwilling  that  the  Ussuri  Rail- 
way should  be  included  within  the  arrangement,  and 
also  that  the  Chairman  of  the  Allied  Board  should 
be  appointed  instead  of  being  elected. 

In  result  the  sub-committee  was  obliged  to  content 
itself  with  reporting  the  f ollomng  resolution : 

Resolved,  That  the  preservation  of  the  Chinese  Eastern  Railway 
for  those  in  interest  requires  that  better  protection  be  given  to  the 
railway  and  the  persons  engaged  in  its  operation  and  use;  a  more 
careful  selection  of  personnel  to  secure  efficiency  of  service,  and  a 
more  economical  use  of  funds  to  prevent  waste  of  the  property. 

That  the  subject  should  immediately  be  dealt  with  through  the 
proper  diplomatic  channels. 

At  the  same  time,  the  sub-committee  reported  that 
the  Powers,  other  than  China,  had  imited  in  the  fol- 
lowing Reservation : 

The  Powers  other  than  China  in  agreeing  to  the  resolution  regard- 
ing the  Chinese  Eastern  Railway,  reserve  the  right  to  insist  hereafter 
upon  the  responsibility  of  China  for  the  performance  or  non-per- 
formance of  the  obligations  towards  the  foreign  stockholders,  bond- 
holders, and  creditors  of  the  Chinese  Eastern  Railway  Co.  which 


CHINESE  EASTERN  RAILWAY  233 

the  Powers  deem  to  result  from  the  contracts  under  which  the  rail- 
road was  built  and  the  action  of  China  thereunder  and  the  obliga- 
tions which  they  deem  to  be  in  the  nature  of  a  trust  lesulting  from 
the  exercise  of  power  by  the  Chinese  Government  over  the  possession 
and  administration  of  the  railroad. 

Dr.  Koo,  who  represented  the  Chinese  Delegation 
on  the  second  sub-committee,  speaking  upon  this  re- 
port and  proposed  resolution,  said  that  as  the  inter- 
allied agreement  provided  for  the  supervision  of  the 
whole  Trans-Siberian  system,  including  the  Chinese 
Eastern  Railway,  it  might  give  rise  to  misgivings  in 
China  if  that  particular  railway  should  be  singled  out 
for  separate  treatment;  and,  furthermore,  that  any 
arrangement  concerning  that  road  would  be  of  only 
limited  value  if  it  did  not  also  include  the  Ussuri 
Railway  which  connected  it  with  the  sea  at  Vladivo- 
stok. In  the  third  place,  the  Chinese  Eastern  Rail- 
way lay  entirely  within  Chinese  territory  and  that, 
therefore,  the  sovereign  rights  of  China  needed  to 
be  safeguarded. 

The  legal  status  of  the  railway.  Dr.  Koo  pointed 
out,  was  expressly  defined  in  the  agreements  between 
China  and  Russia  and  between  China  and  the  Rail- 
way Company  and  the  Russo-Asiatic  Bank,  and  that 
whatever  changes  might  have  taken  place  in  the 
internal  organization  of  the  road  had  been  effected  by 
due  process  of  law.  As  to  this  he  had  reference  to 
the  agreement  of  October  2,  1920,  entered  into 
between  China  and  the  Russo-Asiatic  Bank.  As  to 
the  extent  of  the  trust  that  China  had  assumed,  that 
applied  only  to  the  functions  which  had  been  exer- 
cised by  the  Russian  Government  under  agreements 


234  CHINA  AT  THE  CONFERENCE 

with  China  and  which  China  was  now  exercising  as 
a  provisional  measure  because  of  the  absence,  for  the 
time  being,  of  a  recognized  Russian  Government: 
that  the  Chinese  authorities  had  been  handling  the 
critical  situation  to  the  best  of  their  abilities  and  if 
the  protection  afforded  to  the  road  and  to  those  who 
used  it  had  not  been  fully  adequate  that  had  been  due 
more  to  the  difficulties  consequent  upon  the  political 
disorganization  in  Russia  than  to  any  lack  of  deter- 
mination on  the  part  of  China. 

A  vote  upon  the  first  resolution  was  thereupon 
taken  to  which  all  the  Powers,  including  China,  gave 
their  assent. 

At  the  sixth  plenary  session  of  the  Conference,  held 
February  4,  1922,  the  Resolution  together  with  the 
Reservation  to  it  by  the  Powers  other  than  China, 
were  unanimously  approved. 


CHAPTER  XIX 
Inter-Power  Agreements  Relating  to  China 


The  third  of  the  Chinese  **  Ten  Points  "  had 
declared  as  follows: 

With  a  view  to  strengthening  mutual  confidence  and  maintaining 
peace  in  the  Pacific  and  the  Far  East,  the  Powers  agree  not  to  con- 
clude between  themselves  any  treaty  or  agreement  directly  affecting 
China  or  the  general  peace  in  these  regions  without  previously  notify- 
ing China  and  giving  to  her  an  opportunity  to  participate. 

Chinese  Statement.  This  proposition  was  brought 
before  the  Committee  of  the  Whole  at  its  fourteenth 
meeting,  held  December  8,  by  Dr.  Koo,  who  called 
attention  to  the  fact  that,  in  the  past,  agreements 
relating  to  the  Far  East  generally  and  to  China  in 
particular,  had  been  made  by  the  Powers  between 
themselves  without  notification  to  China  that  such 
agreements  were  in  contemplation  and,  therefore, 
without  giving  to  her  an  opportimity  to  participate 
therein  should  she  desire  to  do  so.  Dr.  Koo  then 
continued  :* 

*  What  follows  is  from  the  official  minutes  of  the  meeting  of  the  Com- 
mittee. The  Chinese  Delegation  submitted  the  following  tentative  list  of 
Inter-Power  Agreements  that  had,  in  the  past,  been  entered  into  with 
reference  to  China: 

1.  Franco-Japanese  Agreement,  June  10,  1907   (MacMurray  640). 

2.  Anglo-Japanese  Treaty,  July  13,  1911   (MacMurray  900). 

3.  Russo-Japanese  Convention  of  July  30,  1907  (MacMurray  657). 

4.  Russo-Japanese  Secret  Convention  of  July  30,  1907  (text  not  avail- 
able). 

236 


236  CHINA  AT  THE  CONFERENCE 

These  agreements,  he  said,  fell  roughly  into  two  divisions,  the  one 
being  in  the  nature  of  mutual  engagements  to  abstain  from  certain 
action  in  special  parts  of  China,  the  other  being  engagements  for 
mutual  assistance  in  support  of  the  general  interests  of  all  foreign 
powers  in  China  or  of  the  special  interests  claimed  by  the  parties  to 
the  agreement. 

As  to  these  treaties  and  agreements,  Mr.  Koo  said  he  felt  that 
they  were  all  so  well  known  to  the  members  of  the  committee  that 
the  complete  enumeration  of  them  or  specific  illustrations  would  be 
unnecessary. 

The  first  kind  of  agreements  usually  was  in  the  nature  of  an  en- 
gagement on  the  part  of  one  contracting  party  not  to  seek  any  rail- 
way concessions  in  one  part  of  China  in  return  for  a  similar  promise 
on  the  part  of  the  other  contracting  parties  not  to  seek  railway  con- 
cessions in  another  part  of  China. 

As  first  it  might  seem  as  if  a  nation  were  within  its  rights  in 
promising  another  to  forego  certain  opportunities  within  a  specific 
region.  But  any  deeper  examination  of  this  matter  would  imme- 
diately show  that  there  were  a  great  many  objections  to  such  a 
method  of  arranging  the  action  of  one  nation  upon  the  territory  of 
another.  In  the  first  place,  it  involved  an  incipient  national  monop- 
oly or  preference  within  the  region  affected,  because  the  nation 
which  had  secured  a  promise  of  abstention  from  one  power  would 
then  proceed  with  efforts  to  secure  a  similar  promise  from  others. 

5.  Russo-Japanese  Convention  of  July  4,  1910  (MacMurray  803). 

6.  Russo-Japanese  Secret  Convention  of  July  4,  1910  (text  not  available). 

7.  Russo-Japanese  Secret  Convention  of  July  8,  1912  (text  not  available). 

8.  Russo-Japanese  Convention  of  July  3,  1916  (MacMurray  1327). 

9.  Russo-Japanese  Treaty  of  Alliance,  of  July  3,  1916  (MacMurray 
1328). 

10.  American-Japanese  Exchange  of  Notes  of  November  30,  1908  (Root- 
Takahira  Agreement)  (MacMurray  769). 

11.  American-Japanese  Exchange  of  Notes  of  November  2,  1917  (Lans- 
ing-Ishii  Agreement)   (MacMurray  1394). 

12.  Anglo-French  Agreement  of  January  15,  1896,  Article  IV  (MacMur- 
ray 54). 

13.  Anglo-Russian  Agreement,  April  28,  1899  (MacMurray  204). 

14.  Anglo-German  Agreement,  September  2,  1898  (MacMurray  266). 


INTER-POWER  AGREEMENTS  237 

Thus  by  the  making  of  only  one  agreement  two  nations  would  be 
backing  a  system  of  artificial  limitation  of  economic  activities. 

The  rights  of  China  were  involved  both  because  she  must  wish 
that  all  the  parts  of  her  territory  should  be  open  on  equal  terms,  or 
on  such  terms  as  she  herself  should  determine,  to  foreign  capitalists, 
merchants,  and  residents.  As  soon  as  such  treaties  as  the  above  were 
made,  without  consultation  with  China,  her  territory  was  divided 
into  distinct  spheres  for  foreign  enterprise.  To  this  she  could  by 
no  means  be  indifferent. 

The  other  group  of  treaties  dealt  with  the  safeguarding  and  de- 
fending of  territorial  rights  or  special  interests  in  the  Far  East, 
including  or  specially  mentioning  China, 

These  all  had  one  or  more  of  the  following  three  features : 

(1)  A  declaration  that  the  contracting  parties  had  a  special 
interest  in  having  order  and  a  pacific  state  of  things  guaranteed  in 
the  regions  of  China  adjacent  to  the  territories  where  the  contract- 
ing powers  had  rights  of  sovereignty,  protection,  or  occupation,  and 
an  engagement  to  support  each  other  for  assuring  peace  and  security 
in  these  regions ;  or 

(2)  A  declaration  to  support  the  independence  and  integrity  of 
China  and  the  maintenance  of  the  open  door  for  foreign  commerce 
and  to  aid  each  other  for  the  defense  of  the  contracting  parties' 
special  interests  in  said  regions;  or 

(3)  The  recognition  by  one  contracting  power  that,  since  pro- 
pinquity creates  special  relations,  the  other  contracting  power  had 
special  interests  in  China, 

It  was  clear  that  any  one  of  the  foregoing  three  features  must  be 
of  vital  interest  to  China.  The  assurance  of  peace  and  order  in  any 
part  of  Chinese  territory  was  a  matter  of  great  concern  to  China 
herself.  The  maintenance  of  the  independence  and  territorial 
integrity  of  China  touched  the  supreme  rights  of  China.  As  to  the 
recognition  of  propinquity  as  creating  special  interests  in  China, 
it  was  equally  obvious  that  such  recognition  could  not  be  valid, 
because  special  interests  on  Chinese  territory  could  not  be  created 
without  the  consent  of  China,  and  China  had  always  contested  the 
soundness  of  the  doctrine  of  propinquity. 


238  CHINA  AT  THE  CONFERENCE 

The  effect  of  all  such  treaties  and  agreements  had  been  to  main- 
tain in  China  conditions  which  intimately  affected  the  rights,  pros- 
pects, and  liberty  of  action  of  China  herself. 

It  appeared,  therefore,  that  the  Chinese  Government  had  an 
equitable  right  to  be  consulted  in  all  agreements  which  dealt  with, 
or  pretended  to  deal  with,  the  general  situation  in  the  Far  East, 
including  China.  Even  if  such  treaties  were  animated  by  an  entirely 
friendly  spirit  toward  China,  yet  their  bearing  was  such  that  they 
might  involve  consequences  which  would  result  in  limitations  on 
Chinese  freedom  of  action ;  even  such  treaties,  therefore,  should  not 
be  made  without  consultation  with  China. 

It  might,  of  course,  be  said  that  China,  not  being  a  party  to  such 
treaties,  need  in  no  way  recognize  them  nor  consider  herself  bound 
by  any  of  their  provisions.  That  was  legally  true.  But  the  political 
effect  produced  by  a  group  of  such  treaties,  just  as  in  the  case  of 
spheres  of  influence,  tended  so  to  modify  the  political  and  economic 
situation  in  China  that  no  efforts  on  the  part  of  the  Chinese  Govern- 
ment would  succeed  in  preserving  its  liberty  of  action.  Should 
recognition  be  given  to  the  practice  that  China  need  not  be  con- 
sulted, the  total  results  of  a  group  of  such  cases  must  be  examined. 
In  that  case  it  was  plain  that  vital  interests  of  China  would  be 
affected,  and  that  the  nature  of  activities  and  interests  within  China 
would  be  determined  entirely  by  the  action  of  outside  powers.  The 
Chinese  Government  would  then  find  itself  obliged  to  move  along 
grooves  laid  down  by  others  without  having  once  had  an  opportunity 
of  insisting  upon  her  own  life  needs  as  seen  by  herself. 

It  must  therefore  be  concluded  that  though  an  individual  agree- 
ment might,  on  the  face  of  it,  concern  only  the  action  of  outside 
powers,  if  that  action  related  to  China,  the  Chinese  Government 
could  not  remain  indifferent  to  it,  because  of  the  effect  which  the 
continued  practice  of  making  agreements  of  this  kind  would  have 
upon  the  liberty  of  movement  and  the  development  of  the  Chinese 
Government  and  the  nation  itself. 

Discussion.  Following  upon  this  statement  by  Dr. 
Koo,  there  was  an  extended  discussion  in  which  the 


INTER-POWER  AGREEMENTS  239 

following  objections  to  accepting,  without  qualifica- 
tion, the  Chinese  proposal  were  made. 

Mr.  Balfour  thought  that  China  could  best  be  bene- 
fited, not  by  adopting  the  broad  principle  which  her 
Delegation  had  proposed,  but  by  dealing  with  her 
difficulties  one  by  one,  as  the  Conference  had  been 
doing,  for  example,  with  regard  to  spheres  of  interest, 
post  offices,  extraterritoriality  and  the  like.  '*  All 
that  the  Conference  could  do  was  to  see  that  no 
undue  limitations,  no  limitations  which  were  not 
necessitated  by  the  facts  of  the  situation,  were  placed 
on  China's  sovereign  independence,  and  to  give  all 
the  help  in  its  power  toward  the  creation  of  a  pure 
and  vigorous  administration."  He  also  thought  that 
the  proposition  put  forward  by  Dr.  Koo  would,  if 
accepted,  involve  a  limitation  of  the  treaty  rights  of 
the  Powers.  For  example,  if  made  of  general  inter- 
national application,  it  would  prevent  France  and 
Belgiiun  from  entering  into  a  defensive  treaty  of  any 
kind  without  consulting  Germany.  All  agreed  that 
the  Powers  had  entered  into  treaties  not  only  in 
regard  to  China  but  also  as  to  other  nations  which 
reflected  no  credit  on  the  parties  to  them,  but  the 
correction  of  this  evil  should  be  sought  in  publicity. 
Most  of  the  nations  represented  at  the  Conference 
were  members  of  the  League  of  Nations  and  were 
bound  by  article  XVIII  of  its  covenant  to  publish 
their  agreements.  The  United  States,  while  not  a 
member,  was  practically  obligated  by  its  Constitution 
to  make  its  treaties  public.  He  would  ask  the  Chinese 
Delegation,  therefore,  not  to  press  its  proposition  in 
the  form  in  which  it  had  been  presented. 


240  CHINA  AT  THE  CONFERENCE 

Secretary  Hughes  spoke  somewhat  along  the  same 
lines,  stressing  the  four  **  Root  Resolutions  "  that 
had  been  adopted  by  the  Conference,  and  especially 
the  one  that  provided  that  no  advantage  should  be 
taken  of  China  because  of  her  present  domestic  diffi- 
culties, but  that  each  Power  should  be  left  free  to 
make  agreements  necessary  for  the  preservation  of 
its  own  proper  interests,  and  that  there  should  be  no 
secret  engagements. 

Sir  Auckland  Geddes  suggested  that  to  the  four 
Root  Resolutions  there  might  be  added  a  fifth  accord- 
ing to  which  the  Powers  would  agree — 

To  enter  into  no  treaty,  agreement,  arrangement,  or  understand- 
ing, either  with  one  another  or  individually  or  collectively,  with 
any  other  Power  or  Powers  which  would  infringe  or  impair  the  prin- 
ciples which  they  have  herein  declared. 

Mr.  Hanihara,  speaking  for  the  Japanese  Delega- 
tion, expressed  the  view  that  this  proposed  resolution 
was  practically  included  within  the  scope  of  the  first 
of  the  Root  Resolutions,  and  that  to  adopt  it  would 
have  the  effect  of  weakening  that  resolution ;  also  that, 
if  such  proposed  resolution  were  adopted,  China  her- 
self should  be  brought  within  its  application. 

Resolution  Adopted.  As  a  result  of  these  observa- 
tions Sir  Auckland's  draft  resolution  was  amended 
so  as  to  read : 

That  the  powers  attending  this  conference,  hereinafter  mentioned, 
to  wit,  the  United  States  of  America,  Belgium,  the  British  Empire, 
China,  France,  Italy,  Japan,  the  Netherlands,  and  Portugal  declare 
that  it  is  their  intention  not  to  enter  into  any  treaty,  agreement, 
arrangement,  or  understanding,  either  with  one  another,  or  indi- 
vidually or  collectively  with  any  power  or  powers,  which  would  in- 


INTER-POWER  AGREEMENTS  241 

fringe  or  impair  the  principles  which  have  been  declared  by  the 
resolution  adopted  November  21  by  this  committee. 

In  this  form  the  resolution  was  unanimously 
approved  by  the  Committee  and  reported  to  the  Con- 
ference which  adopted  it  at  its  fourth  plenary  session, 
held  December  10. 

As  it  appears  as  Article  II  of  the  Nine  Power 
Treaty  Relating  to  Principles  and  policies  to  be 
Followed  in  Matters  Concerning  China,  it  reads : 

The  Contracting  Powers  agree  not  to  enter  into  any  treaty,  agree- 
ment, arrangement,  or  understanding,  either  with  one  another,  or 
individually  or  collectively,  with  any  Power  or  Powers,  which  would 
infringe  or  impair  the  principles  stated  in  Article  I  [the  four  "  Root 
Resolutions  "] . 


17 


CHAPTER  XX 

Arms  Embargo 


As  is  well  known  the  exportation  of  arms  and 
ammunition  to  China  by  the  Powers  has,  for  a  num- 
ber of  years,  been  a  matter  which  has  given  concern 
to  all  the  parties  involved  by  reason  of  the  fact  that 
these  arms  and  munitions  have,  to  a  considerable 
extent,  found  their  way  into  the  possession  of  bands 
of  bandits  operating  in  China,  or  have  served  to  keep 
active  the  civil  warfare  which  has  prevailed  in  that 
country.  In  May,  1919,  a  diplomatic  agreement,  the 
purpose  of  which  was  to  restrain  this  traffic,  was 
arrived  at  but  \\dthout  completely  satisfactory 
results.^ 

On  January  22, 1922,  a  Resolution  was  approved  by 
the  President  of  the  United  States  which  had  been 
adopted  by  Congress  which  provided  that  whenever 
the  President  should  find  that  in  any  American 
country  or  in  any  country  in  which  the  United  States 
exercised  extraterritorial  jurisdiction  conditions  of 
domestic  violence  existed  which  would  be  promoted 
by  the  use  of  arms  and  munitions  if  procured  from 
the  United  States,  he  should  make  proclamation  of 

*  It  will  be  remembered  that  one  of  the  Twenty-One  Demands  of  1915  by 
Japan  upon  China  sought  to  impose  upon  China  the  obligation  to  pur- 
chase fifty  per  cent  or  more  of  her  munitions  from  Japan,  and  that  there 
should  be  established  in  China  a  jointly  worked  Sino-Japanese  arsenal. 
It  has  also  been  supposed  that  a  somewhat  similar  agreement  was  included 
in  the  secret  Sino-Japanese  Military  Agreement  of  1918. 

242 


ARMS  EMBARGO  243 

the  fact  and  declare  it  unlawful  to  export,  except 
under  such  limitations  as  he  might  prescribe,  any 
arms  or  munitions  of  war  from  the  United  States  to 
that  coimtry. 

That  this  Resolution  had  especial  reference  to 
China  was  made  evident  in  a  letter  of  Secretary  of 
State  Hughes  to  Senator  Lodge  of  March  14,  1921.' 

*  This  letter  was  as  follows : 

Sir  :  In  view  of  the  long  continued  civil  strife  in  China,  the  powers  allied 
and  associated  in  the  war,  and  also  certain  of  the  neutral  powers,  mutually 
agreed,  through  their  diplomatic  representatives  in  Peking,  in  May,  1919, 
to  restrict  shipments  from  their  respective  countries  to  China  of  arms  and 
munitions  of  war,  and  material  destined  exclusively  for  their  manufacture 
until  the  establishment  of  a  government  whose  authority  should  be  recog- 
nized throughout  the  whole  country.  The  powers  thus  cooperating  were 
the  United  States,  Great  Britain,  France,  Japan,  Spain,  Portugal,  Russia, 
Brazil,  the  Netherlands,  Denmark,  Belgium,  and  Italy.  The  purport  of  this 
understanding  was  to  put  into  effect  internationally,  as  regards  China,  a 
policy  identical  with  that  which  the  United  States  has  adopted  in  the  past 
in  connection  with  civil  disturbances  in  countries  in  Latin  America,  as  set 
forth  in  Public  Resolution  No.  22,  of  March  14,  1912  (37  Stat.,  p.  630). 
This  Government  was  enabled  to  exercise  the  control  over  the  export  of 
arms  and  munitions  to  China,  in  pursuance  of  the  policy  thus  adopted,  on 
the  basis  of  the  provisions  of  the  espionage  act  of  June  15,  1917,  as  enforced 
by  the  War  Trade  Board. 

By  the  joint  resolution  approved  March  3,  1921,  those  provisions  of  the 
espionage  act  of  June  15,  1917,  providing  for  the  control  of  exports  were 
repealed.  The  Department  of  State  was  thus  deprived  of  any  legal  authority 
by  which  it  could  control  shipment  of  arms  and  thereby  cooperate  with 
the  other  interested  powers  in  restricting  shipments  of  arms  used  to  pro- 
mote and  continue  civil  strife  in  China.  It  is  believed  that  conditions  in 
China  do  not  at  the  present  time  warrant  any  change  in  this  policy,  and 
I  therefore  have  the  honor  to  renew  the  request  contained  in  a  letter 
addressed  to  you  by  Secretary  Lansing  under  date  of  December  31,  1919, 
namely,  that  Public  Resolution  No.  22,  of  March  14,  1912  (37  Stat.,  p.  630), 
be  amended  by  striking  out  the  limiting  word  "  American  "  in  the  first  line, 
or  by  such  other  means  as  you  in  your  discretion  may  consider  adequate, 
to  enable  this  Government  to  continue  its  cooperation  with  the  other  powers 
in  a  policy  which  it  believes  necessary  under  existing  circumstances. 

By  proclamation,  dated  March  6,  1922,  the  President  exercised  the  dis- 
cretionary power  granted  him  by  this  resolution  and  forbade  the  export  to 
China  from  the  United  States  of  arms  and  munitions  of  war. 


244  CHINA  AT  THE  CONFERENCE 

Draft  Resolution.  At  the  twenty-fifth  meeting  of 
the  Committee  of  the  Whole  of  the  Washington  Con- 
ference, held  January  24,  Mr.  Balfour  proposed  for 
adoption  the  following  resolution : 

The  United  States  of  America,  Belgium,  the  British  Empire, 
France,  Italy,  Japan,  the  Netherlands,  and  Portugal  affirm  their 
intention  to  refrain  themselves  and  to  restrain  their  nationals  from 
exporting  to  China  arms,  munitions  of  war,  or  material  destined 
exclusively  for  their  manufacture,  until  the  establishment  of  a  gov- 
ernment whose  authority  is  recognized  throughout  the  whole  country. 

2.  Each  of  the  above  powers  will  forthwith  take  such  additional 
steps  as  may  be  necessary  to  make  the  above  restrictions  immediately 
binding  upon  all  its  nationals. 

3.  The  scope  of  this  resolution  includes  all  concessions,  settle- 
ments, and  leased  territories  in  China. 

4.  The  United  States  of  America  will  invite  the  adherence  to  this 
resolution  of  the  other  powers  in  treaty  relations  with  China. 

Discussion.  Mr.  Sze  asked  if  he  was  right  in 
assuming  that  the  aim  of  this  resolution  was  to  help 
China — the  same  aim,  in  fact,  as  had  animated  the 
resolution  that  had  earlier  been  reported  from  the 
sub-committee  with  regard  to  the  revenues  of  China. 
He  also  observed  that  the  importation  into  China  of 
arms  and  material  for  their  manufacture  was  not 
permitted  by  China  except  under  licenses  issued  by 
the  Chinese  Government. 

Mr.  Balfour  said  that  the  sole  motive  of  the 
British  Empire  Delegation  in  submitting  the  resolu- 
tion was  that  thus  China  might  be  aided  to  obtain  for 
herself  a  strong  and  stable  government.  He  then 
quoted  the  following  notification  to  the  Chinese 
Government  which,  on  May  5,  1919,  the  doyen  of  the 
diplomatic  body  had  made,  and  which  was  almost 


AEMS  EMBARGO  245 

identical  in  phraseology  with  the  words  of  the  first 
paragraph  of  the  resolution : 

The  Governments  of  Great  Britain,  Portugal,  the  United  States, 
Russia,  Brazil,  France,  and  Japan  have  agreed  effectively  to  restrain 
their  subjects  and  citizens  from  exporting  to  or  importing  into 
China  arms  and  munitions  of  war  and  material  destined  exclusively 
for  their  manufacture  until  the  establishment  of  a  government  whose 
authority  is  recognized  throughout  the  whole  country,  and  also  to 
prohibit,  during  the  above  period,  delivery  of  arms  and  munitions 
for  which  contracts  have  already  been  made  but  not  executed.' 

Senator  Schanzer  said  that  while  in  sympathy  with 
the  resolution,  the  Italian  Delegation  was  not  ready 
to  act  upon  it:  he  was  not  in  a  position  to  state 
whether  the  Italian  Government,  in  the  absence  of 
an  international  agreement  approved  by  the  Italian 
Government,  was  allowed  by  existing  legislation  to 
impose  the  necessary  restrictions  upon  this  commerce. 
Upon  his  attention  being  called  to  the  fact  that  Italy 
had  joined  in  the  resolution  of  May  5,  1919,  Senator 
Schanzer  referred  to  the  reservation  which  Italy  had 
at  that  time  made  according  to  which  all  contracts 
already  concluded  by  Italians,  or  to  be  concluded  by 
them  before  all  the  Powers  should  give  their  assent 
to  the  resolution,  were  to  be  excluded  from  its 
operation. 

Jonkheer  Beelaerts,  of  the  Belgian  Delegation,  also 
thought  that  it  would  be  necessary  to  consult  his 
Government  before  giving  assent  to  Mr.  Balfour's 
resolution.  He  also  called  attention  to  the  difference 
in  wording  between  the  Peking  resolution,  referring 

"The  Governmenta  of  the  Netherlands,  Denmark  and  Belgium  subse- 
quently adhered  to  this  arrangement. 


246  CHINA  AT  THE  CONFERENCE 

both  to  exportation  from  the  various  countries  and 
importations  into  China,  and  the  resolution  then 
before  the  Committee  which  mentioned  only  exporta- 
tion to  China. 

Baron  Shidehara  said  that  so  long  as  Japan  was  in 
occupation  of  Port  Arthur  it  would  be  impossible  for 
her  to  undertake  to  restrict  the  dispatch  of  arms 
thither,  but  that  Japan  could  easily  take  efficient 
measures  to  restrict  re-exportation  from  her  leased 
territory  to  other  parts  of  China.  He  was  assured  by 
Mr.  Balfour  that  it  was  not  intended  that  a  country 
should  be  restrained  from  sending  arms  and  muni- 
tions to  its  own  troops — that  this  would  apply  to 
British  troops  in  Kowloon  as  well  as  to  Japanese 
troops  in  the  Liaotung  leased  area. 

The  United  States  Delegation  said  that,  under  its 
existing  laws,  its  Government  had  no  legal  power  to 
control  importation  into  China ;  it  could  control  only 
exportation  from  the  United  States. 

Amended  Resolution.  As  a  result  of  this  discussion 
and  another  brief  one  at  the  twenty-seventh  meeting 
of  the  Committee,  the  Arms  Embargo  resolution  was 
amended  so  as  to  read : 

I.  The  United  States  of  America,  Belgium,  the  British  Empire, 
France,  Italy,  Japan,  the  Netherlands,  and  Portugal  affiirm  their 
intention  to  refrain  from  exporting  to  China  arms  or  munitions  of 
war,  whether  complete  or  in  parts  and  to  prohibit  such  exportation 
from  their  territories  or  territories  under  their  control,  until  the 
establishment  of  a  Government  whose  authority  is  recognized 
throughout  the  whole  of  China. 

II.  Each  of  the  above  Powers  will  forthwith  take  such  additional 
steps  as  may  be  necessary  to  make  the  above  restrictions  immediately 
binding. 


ARMS  EMBARGO  247 

III.  The  scope  of  this  Resolution  includes  all  Concessions  and 
Settlements  in  China. 

IV.  The  United  States  of  America  will  invite  the  adherence  to 
this  Resolution  of  the  other  Powers  in  treaty  relations  with  China. 

The  Netherlands,  French  and  Italian  Delegations 
announced  that  they  had  received  instructions  from 
their  respective  Governments  which  permitted  them 
to  agree  to  this  resolution  as  amended. 

Dr.  Koo  suggested  that  a  time  limit,  say  two  years, 
should  be  placed  upon  the  operation  of  the  Resolu- 
tion. To  this  Mr.  Balfour  rejoined  that  the  resolu- 
tion, by  its  terms,  would  cease  to  operate  when  China 
obtained  a  government  whose  authority  was  recog- 
nized throughout  its  area. 

At  the  twenty-ninth  meeting  of  the  Conomittee,  Mr. 
Hanihara  said  that  if  the  Italian  Government  insisted 
upon  maintaining  its  reservation  of  May,  1919,  Japan 
would  have  to  reserve  the  right  to  take  such  steps  as 
might  be  necessary  to  prevent  undue  hardships  upon 
Japanese  nationals  who  had  important  unexecuted 
contracts  for  the  delivery  of  arms  and  munitions  to 
China — contracts  that  had  been  entered  into  during 
the  period  from  July,  1918,  to  January,  1919.  Since 
that  time,  he  said,  the  Japanese  Government  had  not 
allowed  its  nationals  to  enter  into  contracts  for  the 
sale  of  arms  to  China. 

Resolution  Withdrawn.  At  this  point,  somewhat  to 
the  surprise  of  the  Committee,  it  developed  that  the 
Italian  Delegation  was  imable  to  say  whether,  accord- 
ing to  the  instructions  from  its  Government  which 
were  not  explicit,  by  insisting  upon  its  reservation  of 
May,  1919,  the  Italian  Government  meant  to  save  the 


248  CHINA  AT  THE  CONFERENCE 

right  upon  the  part  of  its  nationals  to  execute  all 
contracts  for  the  delivery  of  arms  to  China  up  to  the 
present  time,  or  whether  only  those  contracts  which 
had  been  entered  into  prior  to  May,  1919,  were  to  be 
allowed  to  be  executed.  As  there  was  then  not  time 
for  the  Italian  Delegation  again  to  communicate  with 
its  Government,  and  as  it  was  agreed  that  it  would 
not  be  feasible  for  the  other  Powers  to  restrict  their 
freedom  of  action  in  the  matter  so  long  as  one  of  the 
Powers  remained  practically  unrestrained,  it  was 
agreed  by  the  Committee  that  the  Arms  Embargo 
Resolution  should  be  withdrawn. 


CHAPTER  XXI 

The  Twenty-One  Demands:   Treaties  and  Agree- 
ments OF  May  25,  1915 


As  has  been  earlier  stated,  the  treaties  and  agree- 
ments of  May  25,  1915,  resulting  from  the  Twenty- 
One  Demands  made  in  that  year  by  Japan  upon 
China,  were  presented  to  the  Conference  in  Com- 
mittee of  the  Whole  by  Dr.  Wang  on  December  14, 
in  connection  with  the  request  that  China  had  made 
that  the  Powers  disavow  all  claims  to  spheres  of 
interest  or  of  influence  or  any  special  interests  within 
the  territory  of  China.  At  this  time  Dr.  Wang  said 
that  these  agreements  vitally  affect  the  very  existence, 
independence,  and  integrity  of  China  and  that  "  in 
the  common  interests  of  the  Powers  as  well  as  of 
China,  and  in  conformity  wdth  the  principles  relating 
to  China  already  adopted  by  the  Committee,  the  Chi- 
nese Delegation  urged  that  the  said  treaties  and 
exchange  of  notes  be  reconsidered  and  cancelled." 

Mr.  Hanihara,  in  behalf  of  the  Japanese  Delegation 
said  that  at  that  time  he  desired  to  reserve  a 
reply  until  he  could  examine  carefully  the  statement 
that  Dr.  Wang  had  made,  but  that  if  there  was  a 
question  as  to  the  validity  or  amendment  or  abroga- 
tion of  the  agreements  he  would  announce  that  the 
Japanese  Delegation  could  not  agree  that  the  matter 
should  be  made  one  for  discussion  at  the  Conference : 

249 


250  CHINA  AT  THE  CONFERENCE 

that  the  matter  was  one,  if  taken  up  at  all,  for  dis- 
cussion only  between  China  and  Japan. 

At  the  eighteenth  meeting  of  the  Committee  when 
this  matter  came  up  for  consideration,  Secretary 
Hughes  suggested  that  inasmuch  as  this  matter  had 
a  very  close  relationship  to  the  other  questions  under 
consideration  in  the  Shantimg  *'  Conversations  '' 
then  in  progress,  it  be  passed  over  until  the 
result  of  these  Conversations  could  be  learned.  As 
it  appeared  that  the  other  Delegations  were  in  favor 
of  this  being  done.  Dr.  Wang  himself  deemed  it  wise 
to  offer  no  objection.  The  result  was  that  the  ques- 
tion of  the  continuing  validity  to  be  ascribed  to  the 
agreements  of  1915  did  not  again  come  before  the 
Conference  until  near  its  close,  that  is  to  say,  until 
the  thirtieth  meeting  of  the  Committee  on  February  2. 

Japanese  Statement.  Baron  Shidehara,  in  behalf 
of  the  Japanese  Delegation,  then  read  the  following 
formal  statement: 

At  a  previous  session  of  this  committee,  the  Chinese  delegation 
presented  a  statement  urging  that  the  Sino-Japanese  treaties  and 
notes  of  1915  be  reconsidered  and  cancelled.  The  Japanese  delega- 
tion, while  appreciating  the  difficult  position  of  the  Chinese  delega- 
tion, does  not  feel  at  liberty  to  concur  in  the  procedure  now  resorted 
to  by  China  with  a  view  to  cancellation  of  international  engagements 
which  she  entered  into  as  a  free  sovereign  nation. 

It  is  presumed  that  the  Chinese  delegation  has  no  intention  of 
calling  in  question  the  legal  validity  of  the  compacts  of  1915,  which 
were  formally  signed  and  sealed  by  the  duly  authorized  representa- 
tives of  the  two  Governments,  and  for  which  the  exchange  of  ratifi- 
cations was  effected  in  conformity  with  established  international 
usages.  The  insistence  by  China  on  the  cancellation  of  those  instru- 
ments would  in  itself  indicate  that  she  shares  the  view  that  the  com- 


THE  TWENTY-ONE  DEMANDS  251 

pacts  actually  remain  in  force  and  will  continue  to  be  effective, 
unless  and  until  they  are  cancelled. 

It  is  evident  that  no  nation  can  have  given  ready  consent  to  ces- 
sions of  its  territorial  or  other  rights  of  importance.  If  it  should 
once  be  recognized  that  rights  solemnly  granted  by  treaty  may  be 
revoked  at  any  time  on  the  ground  that  they  were  conceded  against 
the  spontaneous  will  of  the  grantor,  an  exceedingly  dangerous 
precedent  will  be  established,  with  far-reaching  consequences  upon 
the  stability  of  the  existing  international  relations  in  Asia,  in 
Europe  and  everywhere. 

The  statement  of  the  Chinese  del^ation  under  review  declares 
that  China  accepted  the  Japanese  demands  in  1915,  hoping  that  a 
day  would  come  when  she  should  have  the  opportunity  of  bringing 
them  up  for  reconsideration  and  cancellation.  It  is,  however,  diffi- 
cult to  understand  the  meaning  of  this  assertion.  It  can  not  be  the 
intention  of  the  Chinese  delegation  to  intimate  that  China  may 
conclude  a  treaty,  with  the  thought  in  mind  of  breaking  it  at  the 
first  opportunity. 

The  Chinese  delegation  maintains  that  the  treaties  and  notes  in 
question  are  derogatory  to  the  principles  adopted  by  the  conference 
with  regard  to  China's  sovereignty  and  independence.  It  has,  how- 
ever, been  held  by  the  conference  on  more  than  one  occasion  that 
concessions  made  by  China  ex  contractu,  in  the  exercise  of  her  own 
sovereign  rights,  can  not  be  regarded  as  inconsistent  with  her 
sovereignty  and  independence. 

It  should  also  be  pointed  out  that  the  term  "  twenty-one  demands," 
often  used  to  denote  the  treaties  and  notes  of  1915,  is  inaccurate  and 
grossly  misleading. 

It  may  give  rise  to  an  erroneous  impression  that  the  whole  original 
proposals  of  Japan  had  been  pressed  by  Japan  and  accepted  in  toto 
by  China.  As  a  matter  of  fact,  not  only  "  Group  V,"  but  also 
several  other  matters  contained  in  Japan's  first  proposals  were 
eliminated  entirely  or  modified  considerably,  in  deference  to  the 
wishes  of  the  Chinese  Government,  when  the  final  formula  was 
presented  to  China  for  acceptance.  Official  records  published  by  the 
two  Governments  relating  to  those  negotiations  will  further  show 
that  the  most  important  terms  of  the  treaties  and  notes,  as  signed, 
had  already  been  virtually  agreed  to  by  the  Chinese  negotiators 


252  CHINA  AT  THE  CONFERENCE 

before  the  delivery  of  the  ultimatum,  which  then  seemed  to  the 
Japanese  Government  the  only  way  of  bringing  the  protracted  nego- 
tiations to  a  speedy  close. 

The  Japanese  delegation  can  not  bring  itself  to  the  conclusion 
that  any  useful  purpose  will  be  served  by  research  and  reexamination 
at  this  conference  of  old  grievances  which  one  of  the  nations  repre- 
sented here  may  have  against  another.  It  will  be  more  in  line  with 
the  high  aim  of  the  conference  to  look  forward  to  the  future  with 
hope  and  with  confidence. 

Having  in  view,  however,  the  changes  which  have  taken  place  in 
the  situation  since  the  conclusion  of  the  Sino-Japanese  treaties  and 
notes  of  1915,  the  Japanese  delegation  is  happy  to  avail  itself  of  the 
present  occasion  to  make  the  following  declaration : 

1.  Japan  is  ready  to  throw  open  to  the  joint  activity  of  the  inter- 
national financial  consortium  recently  organized,  the  right  of  option 
granted  exclusively  in  favor  of  Japanese  capital,  with  regard,  first, 
to  loans  for  the  construction  of  railways  in  South  Manchuria  and 
Eastern  Inner  Mongolia,  and,  second,  to  loans  to  be  secured  on  taxes 
in  that  region ;  it  being  understood  that  nothing  in  the  present  de- 
claration shall  be  held  to  imply  any  modification  or  annulment  of 
the  understanding  recorded  in  the  officially  announced  notes  and 
memoranda  which  were  exchanged  among  the  Governments  of  the 
countries  represented  in  the  consortium  and  also  among  the  national 
financial  groups  composing  the  consortium,  in  relation  to  the  scope 
of  the  joint  activity  of  that  organization. 

2.  Japan  has  no  intention  of  insisting  on  her  preferential  right 
under  the  Sino-Japanese  arrangements  in  question  concerning  the 
engagements  by  China  of  Japanese  advisers  or  instructors  on  politi- 
cal, financial,  military,  or  police  matters  in  South  Manchuria. 

3.  Japan  is  further  ready  to  withdraw  the  reservation  which  she 
made,  in  proceeding  to  the  signature  of  the  Sino-Japanese  treaties 
and  notes  of  1915,  to  the  effect  that  Group  V  of  the  original  pro- 
posals of  the  Japanese  Government  would  be  postponed  for  future 
negotiations. 

It  would  be  needless  to  add  that  all  matters  relating  to  Shantung 
contained  in  those  treaties  and  notes  have  now  been  definitely  ad- 
justed and  disposed  of. 


THE  TWENTY-ONE  DEMANDS  253 

In  coining  to  this  decision,  which  I  have  had  the  honor  to  an- 
nounce, Japan  has  been  guided  by  a  spirit  of  fairness  and  modera- 
tion, having  always  in  view  China's  sovereign  rights  and  the 
principle  of  equal  opportunity. 

Chinese  Reply.  Dr.  Wang,  replying  to  Baron 
Shidehara,  said  that  it  was  not  correct  to  say,  as 
Baron  Shidehara  had  said,  that  the  mere  fact  that 
the  Chinese  had  asked  for  an  abrogation  of  the  agree- 
ments of  1915  implied  that  they  recognized  their 
validity :  that,  as  a  matter  of  fact,  the  Chinese  Gov- 
ernment and  the  Chinese  people  had  always  regarded 
these  agreements  as  peculiar  in  themselves  by  reason 
of  the  circumstances  under  which  they  had  been 
negotiated,  and  that  the  conditions  arising  under 
them  were  only  de  facto  and  without  any  legal  recog- 
nition upon  the  part  of  China.  He  said  that  he  would 
make  a  detailed  reply  to  Baron  Shidehara 's  state- 
ment as  soon  as  he  had  the  time  to  prepare  it.  This 
reply,  which  he  made  at  the  last  (thirty-first)  meeting 
of  the  Committee,  held  February  3,  was  as  follows : 

The  Chinese  Delegation  has  taken  note  of  the  statement  of  Baron 
Shidehara  made  at  yesterday's  session  of  the  Committee  with  ref- 
erence to  the  Sino-Japanese  Treaties  and  Notes  of  May  25,  1915. 

The  Chinese  Delegation  learns  with  satisfaction  that  Japan  is 
now  ready  to  throw  open  to  the  joint  activity  of  the  banking  interests 
of  other  Powers  the  right  of  option  granted  exclusively  in  favor  of 
Japanese  capital  with  regard,  first,  to  loans  for  the  construction  of 
railways  in  South  Manchuria  and  Eastern  Inner  Mongolia,  and, 
second,  to  loans  secured  on  taxes  in  that  region ;  and  that  Japan  has 
no  intention  of  insisting  upon  a  preferential  right  concerning  the 
engagement  by  China  of  Japanese  advisers  or  instructors  in  politi- 
cal, financial,  military  or  police  matters  in  South  Manchuria;  also 
that  Japan  now  withdraws  the  reservation  which  she  made  to  the 


254  CHINA  AT  THE  CONFERENCE 

effect  that  Group  V  of  her  original  demands  upon  China  should  be 
postponed  for  future  negotiation. 

The  Chinese  Delegation  greatly  regrets  that  the  Government  of 
Japan  should  not  have  been  led  to  renounce  the  other  claims  pre- 
dicated upon  the  Treaties  and  Notes  of  1915. 

The  Japanese  Delegation  expressed  the  opinion  that  abrogation 
of  these  agreements  would  constitute  "  an  exceedingly  dangerous 
precedent/'  "  with  far-reaching  consequences  upon  the  stability  of  the 
existing  interjiational  relations  in  Asia,  in  Europe  and  everywhere." 

The  Chinese  Delegation  has  the  honor  to  say  that  a  still  more 
dangerous  precedent  will  be  established  with  consequences  upon  the 
stability  of  international  relations  which  can  not  be  estimated,  if, 
without  rebuke  or  protest  from  other  Powers,  one  nation  can  obtain 
from  a  friendly  but,  in  a  military  sense,  weaker  neighbor,  and  under 
circumstances  such  as  attended  the  negotiation  and  signing  of  the 
Treaties  of  1915,  valuable  concessions  which  were  not  in  satisfac- 
tion of  pending  controversies  and  for  which  no  quid  pro  quo  was 
offered.  These  treaties  and  notes  stand  out,  indeed,  unique  in  the 
annals  of  international  relations.  History  records  scarcely  another 
instance  in  which  demands  of  such  a  serious  character  as  those  which 
Japan  presented  to  China  in  1915,  have,  without  even  pretense  of 
provocation,  been  suddenly  presented  by  one  nation  to  another  nation 
with  which  it  was  at  the  time  in  friendly  relations. 

No  apprehension  need  be  entertained  that  the  abrogation  of  the 
agreements  of  1915  will  serve  as  a  precedent  for  the  annulment  of 
other  agreements,  since  it  is  confidently  hoped  that  the  future  will 
furnish  no  such  similar  occurrences. 

So  exceptional  were  the  conditions  under  which  the  agreements 
of  1915  were  negotiated,  that  the  Government  of  the  United  States 
felt  justified  in  referring  to  them  in  the  identic  note  of  May  13, 1915, 
which  it  sent  to  the  Chinese  and  Japanese  Governments.  That  note 
began  with  the  statement  that  "  in  view  of  the  circumstances  of  the 
negotiations  which  have  taken  place  and  which  are  now  pending 
between  the  Government  of  China  and  the  Government  of  Japan  and 
of  the  agreements  which  have  been  reached  as  the  result  thereof,  the 
Government  of  the  United  States  has  the  honor  to  notify  the  Govern- 
ment of  the  Chinese  Republic  (Japan)  that  it  can  not  recognize  any 
agreement  or  undertaking  which  has  been  entered  into  between  the 


THE  TWENTY-ONE  DEMANDS  255 

Governments  of  China  and  Japan  impairing  the  treaty  rights  of 
the  United  States  and  its  citizens  in  China,  the  political  or  terri- 
torial integrity  of  the  Eepublic  of  China,  or  the  international 
policy  relative  to  China  commonly  known  as  the  Open  Door  Policy." 

Conscious  of  her  obligations  to  the  other  Powers,  the  Chinese 
Government,  immediately  after  signing  the  agreements,  published 
a  formal  statement  protesting  against  the  agreements  which  she  had 
been  compelled  to  sign,  and  disclaiming  responsibility  for  conse- 
quent violations  of  treaty  rights  of  the  other  Powers.  In  the  state- 
ment thus  issued  the  Chinese  Government  declared  that  although 
they  were  "constrained  to  comply  in  full  with  the  terms  of  the 
(Japanese)  ultimatum"  they  nevertheless  "disclaim  any  desire  to 
associate  themselves  with  any  revision  which  may  be  thus  effected, 
of  the  various  conventions  and  agreements  concluded  between  the 
other  Powers  in  respect  of  the  maintenance  of  China's  territorial 
independence  and  integrity,  the  preservation  of  the  status  quo,  and 
the  principle  of  equal  opportunity  for  the  commerce  and  industry 
of  all  nations  in  China." 

Because  of  the  essential  injustice  of  these  provisions,  the  Chinese, 
Delegation,  acting  in  behalf  of  the  Chinese  Government  and  of  the 
Chinese  people,  has  felt  itself  in  duty  bound  to  present  to  this  con- 
ference, representing  the  Powers  with  substantial  interests  in  the 
Far  East,  the  question  as  to  the  equity  and  justice  of  these  agree- 
ments and  therefore  as  to  their  fundamental  validity. 

If  Japan  is  disposed  to  rely  solely  upon  a  claim  as  to  the  technical 
or  juristic  validity  of  the  agreements  of  1915,  as  having  been  actually 
signed  in  due  form  by  the  two  Governments,  it  may  be  said  that 
80  far  as  this  Conference  is  concerned  the  contention  is  largely 
irrelevant,  for  this  gathering  of  the  representatives  of  the  nine 
Powers  has  not  had  for  its  purpose  the  maintenance  of  the  legal 
status  quo.  Upon  the  contrary,  the  purpose  has  been,  if  possible, 
to  bring  about  such  changes  in  existing  conditions  upon  the  Pacific 
and  in  the  Far  East  as  might  be  expected  to  promote  that  enduring 
friendship  among  the  nations  of  which  the  President  of  the  United 
States  spoke  in  his  letter  of  invitation  to  the  Powers  to  participate 
in  this  Conference. 

For  the  following  reasons,  therefore,  the  Chinese  Delegation  is 
of  the  opinion  that  the  Sine-Japanese  Treaties  and  Exchange  of 


256  CHINA  AT  THE  CONFERENCE 

Notes  of  May  25,  1915,  should  form  the  subject  of  impartial  exami- 
nation with  a  view  to  their  abrogation : 

1.  In  exchange  for  the  concessions  demanded  of  China,  Japan 
offered  no  quid  pro  quo.  The  benefits  derived  from  the  agreements 
were  wholly  unilateral. 

2.  The  agreements,  in  important  respects,  are  in  violation  of 
treaties  between  China  and  the  other  powers. 

3.  The  agreements  are  inconsistent  with  the  principles  relating 
to  China  which  have  been  adopted  by  the  conference. 

4.  The  agreements  have  engendered  constant  misunderstanding 
between  China  and  Japan,  and,  if  not  abrogated,  will  necessarily 
tend,  in  the  future,  to  disturb  friendly  relations  between  the  two 
countries,  and  will  thus  constitute  an  obstacle  in  the  way  of  realizing 
the  purpose  for  the  attainment  of  which  this  Conference  was  con- 
vened. As  to  this,  the  Chinese  Delegation,  by  way  of  conclusion, 
can,  perhaps,  do  no  better  than  quote  from  a  resolution  introduced 
in  the  Japanese  Parliament,  in  June,  1915,  by  Mr.  Hara,  later 
Premier  of  Japan,  a  resolution  which  received  the  support  of  some 
one  hundred  and  thirty  of  the  members  of  the  parliament. 

The  resolution  reads: 

"Resolved,  That  the  negotiations  carried  on  with  China  by  the 
present  Government  have  been  inappropriate  in  every  respect;  that 
they  are  detrimental  to  the  amicable  relationship  between  the  two 
countries,  and  provocative  of  suspicions  on  the  part  of  the  Powers ; 
that  they  have  the  effect  of  lowering  the  prestige  of  the  Japanese 
Empire ;  and  that,  while  far  from  capable  of  establishing  the  f oimda- 
tion  of  peace  in  the  Far  East,  they  will  form  the  source  of  future 
trouble." 

The  foregoing  declaration  has  been  made  in  order  that  the 
Chinese  Government  may  have  upon  record  the  view  which  it  takes, 
and  will  continue  to  take,  regarding  the  Sino-Japanese  Treaties 
and  Exchange  of  Notes  of  May  25, 1915. 

Statement  of  the  United  States.  Thereupon,  on 
behalf  of  the  American  Government,  Secretary- 
Hughes  stated  that  the  position  of  the  Government 
of  the  United  States  with  reference  to  these  agree- 
ments was  as  follows : 


THE  TWENTY-ONE  DEMANDS  257 

The  important  statement  made  by  Baron  Shidehara  on  behalf  of 
the  Japanese  Government  makes  it  appropriate  that  I  should  refer 
to  the  position  of  the  Government  of  the  United  States  as  it  was 
set  forth  in  identical  notes  addressed  by  that  Government  to  the 
Chinese  Government  and  to  the  Japanese  Government  on  May  13, 
1915. 

The  note  to  the  Chinese  Government  was  as  follows : 

"  In  view  of  the  circumstances  of  the  negotiations  which  have 
taken  place  and  which  are  now  pending  between  the  Government  of 
China  and  the  Government  of  Japan  and  of  the  agreements  which 
have  been  reached  as  a  result  thereof,  the  Government  of  the  United 
States  has  the  honor  to  notify  the  Government  of  the  Chinese 
Republic  that  it  can  not  recognize  any  agreement  or  undertaking 
which  has  been  entered  into  or  which  may  be  entered  into  between 
the  Governments  of  China  and  Japan  impairing  the  Treaty  rights 
of  the  United  States  and  its  citizens  in  China,  the  political  or  terri- 
torial integrity  of  the  Eepublic  of  China,  or  the  international  policy 
relative  to  China  commonly  known  as  the  Open  Door  Policy. 

"  An  identical  note  has  been  transmitted  to  the  Imperial  Japanese 
Government." 

That  statement  was  in  accord  with  the  historic  policy  of  the 
United  States  in  its  relation  to  China,  and  its  position  as  thus  stated 
has  been,  and  still  is,  consistently  maintained. 

It  has  been  gratifying  to  learn  that  the  matters  concerning  Shan- 
tung, which  formed  the  substance  of  Group  I  of  the  original 
demands,  and  were  the  subject  of  the  Treaty  and  exchange  of  notes 
with  respect  to  the  province  of  Shantung,  have  been  settled  to  the 
mutual  satisfaction  of  the  two  parties  by  negotiations  conducted 
collaterally  with  this  Conference,  as  reported  to  the  Plenary  Session 
on  February  1st. 

It  is  also  gratifying  to  be  advised  by  the  statement  made  by 
Baron  Shidehara  on  behalf  of  the  Japanese  Government  that  Japan 
is  now  ready  to  withdraw  the  reservation  which  she  made,  in  pro- 
ceeding to  the  signature  of  the  treaties  and  notes  of  1915,  to  the 
effect  that  Group  5  of  the  original  proposals  of  the  Japanese  Gov- 
ernment— namely,  those  concerning  the  employment  of  influential 
Japanese  as  political,  financial,  and  military  advisers;  land  for 
schools  and  hospitals;  certain  railways  in  South  China;  the  supply 
18 


258  CHINA  AT  THE  CONFERENCE 

of  arms,  and  the  right  of  preaching — would  be  postponed  for  future 
negotiations.  This  definite  witlidrawal  of  the  outstanding  ques- 
tions under  Group  5  removes  what  has  been  an  occasion  for  consider- 
able apprehension  on  the  part  alike  of  China  and  of  foreign  nations 
wliich'  felt  that  the  renewal  of  these  demands  could  not  but  prejudice 
the  principles  of  the  Integrity  of  China  and  of  the  Open  Door. 

With  respect  to  the  Treaty  and  the  notes  concerning  South  Man- 
churia and  Eastern  Inner  Mongolia,  Baron  Shidehara  has  made  the 
reassuring  statement  that  Japan  has  no  intention  of  insisting  on  a 
preferential  right  concerning  the  engagement  by  China  of  Japanese 
advisers  or  instructors  on  political,  financial,  military,  or  police 
matters  in  South  Manchuria. 

Baron  Shidehara  has  likewise  indicated  the  readiness  of  Japan 
not  to  insist  upon  the  right  of  option  granted  exclusively  in  favor 
of  Japanese  capital  with  regard,  first,  to  loans  for  the  construction 
of  railways  in  South  Manchuria  and  Eastern  Inner  Mongolia ;  and, 
second,  with  regard  to  loans  secured  on  the  taxes  of  those  regions; 
but  that  Japan  will  throw  them  open  to  the  joint  activity  of  the 
international  financial  Consortium  recently  organized. 

As  to  this,  I  may  say  that  it  is  doubtless  the  fact  that  any  enter- 
prise of  the  character  contemplated,  which  may  be  undertaken  in 
these  regions  by  foreign  capital,  would  in  all  probability  be  under- 
taken by  the  Consortium.  But  it  should  be  observed  that  existing 
treaties  would  leave  the  opportunity  for  such  enterprises  open  on 
terms  of  equality  to  the  citizens  of  all  nations.  It  can  scarcely  be 
assumed  that  this  general  right  of  the  Treaty  Powers  of  China 
can  be  effectively  restricted  to  the  nationals  of  those  countries  which 
are  participants  in  the  work  of  the  Consortium,  or  that  any  of  the 
Governments  which  have  taken  part  in  the  organization  of  the 
Consortium  would  feel  themselves  to  be  in  a  position  to  deny  all 
rights  in  the  matter  to  any  save  the  members  of  their  respective 
national  groups  in  that  organization.  I  therefore  trust  that  it  is 
in  this  sense  that  we  may  properly  interpret  the  Japanese  Govern- 
ment's declaration  of  willingness  to  relinquish  its  claim  under  the 
1915  treaties  to  any  exclusive  position  with  respect  to  railway  con- 
struction and  to  financial  operations  secured  upon  local  revenues, 
in  South  Manchuria  and  Eastern  Inner  Mongolia. 


THE  TWENTY-ONE  DEMANDS  259 

It  is  further  to  be  pointed  out  that  by  Article  II,  III,  and  IV  of 
the  Treaty  of  May  25,  1915,  with  respe'jt  to  South  Manchuria  and 
Eastern  Inner  Mongolia,  the  Chinese  Government  granted  to 
Japanese  subjects  the  right  to  lease  land  for  building  purposes,  for 
trade  and  manufacture,  and  for  agricultural  purposes  in  South 
Manchuria,  to  reside  and  travel  in  South  Manchuria,  and  to  engage 
in  any  kind  of  business  and  manufacture  there,  and  to  enter  into 
joint  undertakings  with  Chinese  citizens  in  agriculture  and  similar 
industries  in  Eastern  Inner  Mongolia. 

With  respect  to  this  grant,  the  Grovernment  of  the  United  States 
will,  of  course,  regard  it  as  not  intended  to  be  exclusive,  and,  as  in 
the  past,  will  claim  from  the  Chinese  Government  for  American 
citizens  the  benefits  accruing  to  them  by  virtue  of  the  most  favored 
nation  clauses  in  the  treaties  between  the  United  States  and  China. 

I  may  pause  here  to  remark  that  the  question  of  the  validity  of 
treaties  as  between  Japan  and  China  is  distinct  from  the  question 
of  the  treaty  rights  of  the  United  States  under  its  treaties  with 
China ;  these  rights  have  been  emphasized  and  consistently  asserted 
by  the  United  States. 

In  this,  as  in  all  matters  similarly  affecting  the  general  right  of 
its  citizens  to  engage  in  commercial  and  industrial  enterprises  in 
China,  it  has  been  the  traditional  policy  of  the  American  Govern- 
ment to  insist  upon  the  doctrine  of  equality  for  the  nationals  of 
all  countries,  and  this  policy,  together  with  the  other  policies  men- 
tioned in  the  note  of  May  13,  1915,  which  I  have  quoted,  are  con- 
sistently maintained  by  this  government.  I  may  say  that  it  is  with 
especial  pleasure  that  the  Government  of  the  United  States  finds 
itself  now  engaged  in  the  act  of  reaffirming  and  defining,  and  I  hope 
that  I  may  add,  revitalizing,  by  the  proposed  Xinc- Power  Treaty, 
these  policies  with  respect  to  China. 

After  these  statements  it  was  proposed  and  decided 
in  the  committee  that  the  statements  thus  made  should 
be  reported  to  the  Conference  to  be  spread  upon  its 
record.  In  the  course  of  the  vote  Mr.  Koo  stated  in 
the  committee  that  his  colleagues  and  he  himself 
desire  to  indorse  the  Chairman's  suggestion  that  all 


260  CHINA  AT  THE  CONFERENCE 

of  the  statements  on  this  very  important  question 
would  be  spread  upon  the  records  of  the  Conference, 
it  being  understood  of  course  that  the  Chinese  Dele- 
gation reserved  their  right  to  seek  a  solution  on  all 
future  appropriate  occasions  concerning  those  por- 
tions of  the  treaties  and  notes  of  1915  which  did  not 
appear  to  have  been  expressly  relinquished  by  the 
Japanese  Government.    The  Chairman  stated : 

Of  course  it  is  understood  that  the  rights  of  all  Powers  are  re- 
served with  respect  to  the  matters  mentioned  by  Mr,  Koo. 

It  was  agreed  that  these  statements  should  be 
spread  upon  the  records  of  the  Conference,  and  that 
the  Chinese  Delegation  reserved  their  right  to  seek 
relief  on  all  appropriate  occasions,  concerning  those 
portions  of  the  treaties  and  notes  of  1915  which  did 
not  appear  to  have  been  expressly  relinquished  by  the 
Japanese  Government. 

At  the  sixth  plenary  session  of  the  Conference, 
held  February  4,  1922,  Baron  Shidehara's  and  Dr. 
Wang's  and  Secretary  Hughes'  statements  were  read, 
in  extenso,  in  order,  as  the  Chairman  said,  that  they 
might  be  formally  placed  upon  the  records  of  the 
Conference. 


CHAPTER  XXII 
China's  Commitments 


Upon  the  Agenda  of  the  Conference  relating  to 
China  appeared  the  item  **  The  Status  of  Existing 
Commitments."  This  topic  was  not  reached  in  the 
Committee  of  the  Whole  until  its  twenty-first  meet- 
ing, held  January  19,  when  the  Chairman  introduced 
it  with  the  statement  that  it  would  be  of  service  if  a 
clear  understanding  could  be  had,  when  the  Confer- 
ence ended,  of  the  commitments  which  were  claimed 
to  exist  with  respect  to  China. 

Chinese  Proposals.  The  Chinese  Delegation,  as  it 
had  done  with  reference  to  the  other  subjects  dis- 
cussed by  the  Conference,  took  the  lead.  Dr.  Koo, 
speaking  in  behalf  of  his  Delegation,  said  that  he  had 
three  suggestions  to  make :  First,  that  all  the  Powers 
which  had  any  claims  on  China  should  make  them 
known,  in  other  words  that  the  principle  of  publicity 
should  be  applied  to  them ;  Second,  that  the  validity 
of  these  commitments  should  be  determined;  and 
Third,  that,  after  their  validity  had  been  determined, 
steps  should  be  taken  to  hannonize  them  with  one 
another  and  with  the  principles  adopted  by  the 
Conference. 

As  to  the  first  point,  that  of  publicity,  Dr.  Koo 
referred  to  the  fact  that  this  principle  had  been  pro- 

261 


262  CHINA  AT  THE  CONFERENCE 

vided  for  in  Article  XVIII  of  the  Covenant  of  tlie 
League  of  Nations,  and  that  there  were  special  rea- 
sons why  it  should  be  observed  with  regard  to  China. 
These  special  reasons  arose  out  of  the  fact  that  many 
of  the  commitments  claimed  to  have  been  made  by 
China  were  based  on  agreements  entered  into  under 
very  uncertain  circumstances — in  some  cases  in 
letters  or  verbal  statements  of  a  single  Chinese  official, 
not  even  of  the  Central  Government.  As  long  as  the 
principle  for  which  he  contended  was  not  applied, 
Dr.  Koo  continued,  not  only  would  speculations  and 
suspicions  be  rife,  but  the  Powers  be  led  to  adopt 
policies  that  would  run  counter  to  existing  but 
unknown  agreements.  Moreover,  China  herself  could 
not  adopt  sound  economic  or  fiscal  policies  until  she 
had  a  full  knowledge  of  the  claims  which  the  Powers 
might  advance  against  her.  So  far  as  China  herself 
was  concerned,  she  was  ready,  in  accordance  with  the 
principle  of  full  publicity  for  all  international  en- 
gagements, to  place  before  the  Conference  the  texts 
of  all  commitments  to  which  she  was  a  party  and  any 
other  information  regarding  them  which  the  other 
Delegations  might  desire.  Dr.  Koo  added  that,  so 
far  as  the  Chinese  Delegation  was  aware,  the  only 
engagement  which  China  had  entered  into  the  authen- 
tic text  of  which  had  not  been  published,  and  con- 
cerning which  the  other  Powers  had  at  times  exhib- 
ited an  interest,  was  the  so-called  Li-Lobanoff  treaty 
of  1896  between  China  and  Russia.  This  text  he  was 
ready  to  supply  if  there  was  a  desire  for  it.^ 

*  The  summary  of  the  text,  obtained  by  cable  from  Peking,  was  supplied 
to  the  Committee  at  its  twenty-fifth  meeting. 


CHINA'S  COMMITMENTS  263 

Regarding  the  validity  of  such  claims  upon  China 
as  might  be  submitted,  Dr.  Koo  said  that  it  was  espe- 
cially desirable  that  those  should  be  examined  which 
had  been  obtained  in  doubtful  circumstances. 

As  to  the  harmonizing  of  the  commitments  or 
claims  with  one  another  and  with  the  principles 
adopted  by  the  Conference,  Dr.  Koo  said  that  while 
this  would  introduce  the  principle  of  retroactivity, 
the  fact  could  not  be  overlooked  that  there  were  com- 
mitments which  were  in  conflict  with  one  another  and 
that  it  was  to  the  interest  of  all  concerned  that  these 
possible  causes  of  controversy  should  be  removed :  if 
an  existing  commitment  were  sound  and  just  it  would 
have  nothing  to  fear  since  the  course  proposed  would 
furnish  an  opportunity  to  confirm  its  validity. 

Discussion.  The  Chairman,  Secretary  Hughes, 
spoke  with  emphatic  approval  of  China's  proposition 
that  the  Powers  should  make  a  full  disclosure  of  all 
the  claims  which  they  had  upon  China,  and  that  they 
should  file  with  the  Secretary-General  of  the  Confer- 
ence all  treaties  or  other  engagements  upon  which 
their  Governments  expected  to  rely. 

Sir  Auckland  Geddes  said  that  the  British  Empire 
was  prepared  to  publish  and  file  every  such  commit- 
ment upon  which  it  relied.  He  suggested,  however, 
that  a  certain  time  interval  should  be  provided  in 
which  the  lists  should  be  submitted,  and  that,  as  most 
of  the  agreements  were  already  published,  a  simple 
reference  to  some  standard  collection  such  as  that  of 
Mr.  MacMurray,  should  be  deemed  sufficient. 

Baron  Shidehara  said  that  Japan  was  prepared  to 
supply  such  a  list  of  agreements  to  which  its  Govern- 


264  CHINA  AT  THE  CONFERENCE 

ment  was  a  party,  but  that  Chinese  obligations  to 
individuals  or  companies  to  which  the  Government 
was  not  a  party  would  be  difficult  to  list  since  the 
Government  was  not,  in  all  cases,  in  a  position  to 
ascertain  their  precise  nature  and  terms.  Also  that 
there  were  some  engagements,  as,  for  example,  those 
relating  to  the  Chinese  Eastern  Railway,  which  were 
of  serious  concern  to  its  nationals  but  to  which  the 
Government  was  not  a  party.  He  suggested,  there- 
fore, that  the  several  Governments  should  list  the 
engagements  in  which  they  had  an  interest,  which 
were  made  by  them,  or  in  their  behalf,  or  to  which 
they  were  related,  or  of  which  they  had  knowledge. 
Viscount  d'Alte,  of  the  Portuguese  Delegation, 
asked  if  it  was  necessary,  in  the  Chairman's  opinion, 
to  list  local  engagements  entered  into  by  colonial 
authorities  and  Chinese  authorities,  or  whether  only 
treaties  were  referred  to.  The  Chairman  replied  that 
if  there  was  an  engagement  of  any  character  which 
was  to  be  asserted  against  China,  in  favor  of  a  Power 
or  its  nationals,  it  was  desirable  that  the  Conference 
should  know  what  it  was,  and  that  this  consideration 
applied  to  commitments  of  the  local  authorities  as 
well  as  of  the  Central  Government  of  China. 

Draft  Resolution.  At  the  next  (twenty-second) 
meeting  of  the  Committee,  Secretary  Hughes  sub- 
mitted the  following  draft  resolution : 

The  powers  represented  in  this  conference,  considering  it  desir- 
able that  there  should  hereafter  be  full  publicity  with  respect  to  all 
matters  affecting  the  political  and  other  international  obligations 
of  China  and  of  the  several  powers  in  relation  to  China,  are  agreed 
as  follows : 


CHINA'S  COMMITMENTS  265 

I.  The  several  powers  will  at  their  earliest  convenience  file  with 
the  secretariat  general  of  the  conference  for  transmission  to  the 
participating  powers  a  list  of  all  treaties,  conventions,  exchanges 
of  notes,  or  other  international  agreements  which  they  may  have 
with  China,  or  with  any  other  power  or  powers  in  relation  to  China, 
which  they  deem  to  be  still  in  force  and  upon  which  they  may  desire 
to  rely.  In  each  case,  citations  will  be  given  to  any  official  or  other 
publication  in  which  an  authoritative  text  of  the  documents  may  be 
found.  In  any  case  in  which  the  document  may  not  have  been  pub- 
lished, a  copy  of  the  text  (in  its  original  language  or  languages) 
will  be  filed  with  the  secretariat  general  of  the  conference. 

Every  treaty  or  other  international  agreement  of  the  character 
indicated  shall  hereafter  be  notified  to  the  powers  here  represented 
within  60  days  of  its  conclusion. 

II.  The  several  powers  will  file  with  the  secretariat  general  of  the 
conference  at  their  earliest  convenience  for  transmission  to  the 
participating  powers  a  list,  as  nearly  complete  as  may  be  possible, 
of  all  those  contracts  between  their  nationals,  of  the  one  part,  and 
the  Chinese  Government  or  any  of  its  administrative  subdivisions, 
of  the  other  part,  on  which  their  respective  Governments  propose 
to  rely,  which  involve  any  concession,  franchise,  option  or  preference 
with  respect  to  railway  construction,  mining,  forestry,  navigation, 
river  conservancy,  harbor  works,  reclamation,  electrical  communica- 
tions, or  other  public  works  or  public  services,  or  for  the  sale  of 
arms  or  ammunition,  or  which  involve  either  a  lien  upon  any  of 
the  public  revenues  or  properties  of  the  Chinese  central  Government 
or  of  the  several  provinces,  or  a  financial  obligation  on  the  part  of 
that  Government  or  of  the  provinces  exceeding  $1,000,000  silver 
(peiyang  $1,000,000) .  There  shall  be,  in  the  case  of  each  document 
80  listed,  either  a  citation  to  a  published  text,  or  a  copy  of  the  text 
itself. 

Every  contract  of  the  character  indicated  shall  hereafter  be  noti- 
fied to  the  powers  here  represented  within  60  days  of  its  conclusion. 

Discussion.  Baron  Shideliara,  speaking  upon  this 
Resolution,  said  that  when  citations  were  made  to 
MacMurray  or  to  other  compilations  of  agreements 


266  CHINA  AT  THE  CONFEEENCE 

it  should  be  with  the  understanding  that  the  accuracy 
of  the  texts  and  of  the  translations  was  not  to  be 
considered  as  guaranteed  by  the  Government  making 
the  citation.  In  the  second  place,  he  said,  that, 
though  the  Japanese  Delegation  had  a  general  knowl- 
edge of  the  important  contracts  concluded  between 
Japanese  nationals  and  the  Chinese  Government  or 
local  authorities,  they  had  not  at  hand  the  full  texts 
nor  was  there  any  legal  means  whereby  the  indi- 
viduals firms  or  corporations  could  be  compelled  to 
supply  them. 

Secretary  Hughes  said  that  he  saw  no  reason 
why  texts  or  translations  in  compilations  should 
not  be  subject  to  correction.  As  to  the  second  point, 
he  assumed  that  the  lists  were  to  include  all  contracts 
either  between  the  Governments,  or  in  which  the 
Governments  had  an  interest,  and  of  which  they  had 
knowledge.  He  would  assume  that,  in  providing  a 
list,  a  Government  would  give  what  would  amount  to 
an  assurance  that  it  was,  in  these  respects,  as  com- 
plete as  that  Government  could  make  it.  The  con- 
tracts referred  to  in  Article  II,  he  said 

were  concessions,  franchises,  options,  or  preferences  with  respect  to 
railway  construction,  mining,  forestry,  navigation,  river  con- 
servancy, harbor  works,  reclamations,  electrical  communications,  or 
other  public  works  or  public  services,  for  the  sale  of  arms  or  muni- 
tions, or  which  involved  either  liens  upon  any  of  the  public  revenues 
or  properties  of  the  Chinese  central  government  or  of  the  several 
provinces,  or  financial  obligations  on  the  part  of  that  government 
or  of  the  provinces  exceeding  $1,000,000  silver.  They  were  con- 
tracts or  concessions  of  the  character  described,  between  the  nationals 
of  a  Government  on  one  part  and  the  Chinese  Government  or  any 
of  its  administrative  subdivisions  on  the  other.  In  other  words, 
from  the  Chinese  side  it  was  a  government  contract;  it  was  a 


CHINA'S  COMMITMENTS  267 

government  contract  in  relation  to  these  classes  of  works  of  a  very 
important  character.  Of  course,  with  the  information  that  this 
policy  had  been  adopted,  which  could  hardly  fail  to  come  to  the 
attention  of  any  concern  seeking  a  concession  or  contract  of  this 
sort  from  the  Chinese  Government  or  its  political  subdivisions,  he 
supposed  that  it  might  well  be  understood  that  the  governments  of 
the  nationals  concerned  would  be  informed,  if  it  were  to  be  expected 
that  tliey  would  later  diplomatically  support  the  undertaking.  Also, 
as  had  just  been  pointed  out  to  him,  there  was  a  further  point  that 
should  be  mentioned;  the  Government  whose  nationals  were  con- 
cerned, as  well  as  the  other  Governments  represented  at  this  con- 
ference, would  be  at  once  informed  by  China  of  the  making  of  the 
contract.  So  he  felt  that,  so  far  as  the  future  was  concerned,  their 
Japanese  colleagues  would  not  be  in  any  danger  of  being  taken  by 
surprise. 

Baron  Shidehara  said  that  perhaps  he  had  not 
made  his  meaning  entirely  clear.  There  might  be 
some  contracts  of  the  nature  specified  in  Article  II  of 
which  the  Japanese  Government  had  at  present  no 
knowledge,  but  with  regard  to  which  question  might 
later  arise.  If  these  contracts  were  legitimate,  the 
Japanese  Government  would  have  to  support  them. 
According  to  this  article,  each  power  would  be 
required  to  supply  a  list  of  these  contracts  as  nearly 
complete  as  possible.  The  Japanese  Government 
would  do  everything  in  its  power  to  supply  such  a 
list,  but  it  could  not  guarantee  that  this  would  be 
complete.  He  also  wished  to  call  attention  to  the 
fact  that  the  first  paragraph  of  Article  II  specified 
that  the  several  powers  were  to  file  with  the  secretary 
general  of  the  conference,  at  their  earliest  conveni- 
ence, for  transmission  to  the  participating  powers, 
a  list,  as  nearly  complete  as  might  be  possible,  of  all 
those  contracts  between  their  nationals,  etc.,  while 


268  CHINA  AT  THE  CONFERENCE 

the  second  paragraph  of  this  same  article  did  not 
contain  such  a  limitation. 

Mr.  Balfour  observed  that  China  should  herself 
be  made  a  party  to  the  proposed  arrangement,  that 
is,  that  she  should  supply  a  list  of  the  commitments 
which  she  had  made.  He  also  suggested  that  pro- 
vision be  made  for  the  adherence  of  other  Powers  not 
represented  at  the  Conference. 

At  the  twenty-third  meeting  of  the  Committee  there 
was  a  further  discussion  of  the  subject  during  which 
Dr.  Koo  suggested  that  it  appeared  that  one  class  of 
agreements,  which  were  of  great  importance,  was  not 
included  within  the  scope  of  the  resolution.  These 
were  agreements  which  concerned  China,  but  which 
were  made  between  a  set  of  nationals  of  one  countrj" 
with  a  set  or  sets  of  nationals  of  one  or  more  other 
countries.  Instances  of  these  agreements  were  the 
Anglo-German  bankers'  arrangement  concerning 
spheres  of  influence  in  railway  construction  of  Sep- 
tember 7,  1898,  and  the  International  Consortium 
agreement  of  October  15,  1920. 

With  reference  to  this  point  Mr.  Root  said  that 
contracts  of  the  kind  referred  to  could  be  dealt  with 
by  the  laws  of  China,  and  doubtless  would  be  so  dealt 
with  when  China  had  carried  out  her  process  of  reor- 
ganization and  stabilization.  The  real  remedy,  as 
he  saw  it,  for  such  agreements  as  should  in  any  way 
prejudice  China,  would  be,  not  that  the  Governments 
should  attempt  to  give  notice  of  contracts  of  which 
they  might  have  no  knowledge,  but  that  they  should 
agree  to  a  resolution  of  the  following  purport : 

Resolved,  That  the  signatory  Powers  will  not  support  any  agree- 
ment by  their  respective  nationals  with  each  other  designed  to 


CHINA'S  COMMITMENTS  269 

create  spheres  of  influence  or  to  provide  for  the  enjoyment  of 
mutually  exclusive  opportunities  in  designated  parts  of  Chinese 
territory. 

Baron  Shidehara  asked  if  this  resolution  had  not 
been  covered  by  the  Open  Door  resolution  which  had 
already  been  adopted.  The  Chairaian,  as  to  this, 
observed  that  the  proposed  resolution  related  not  to 
agreements  by  Governments  but  to  agreements 
between  nationals  and  the  support  of  such  agreements 
by  Governments :  it  might  be  within  the  spirit  of  the 
Open  Door  resolution  but  that  it  would  be  well  to 
make  a  definite  statement  upon  this  particular  point 
which  would  bind  the  consciences  of  the  Govern- 
ments. Mr.  Root  thought  that  the  proposed  resolu- 
tion had  not  been  covered  by  the  Open  Door 
resolution, — that  it  was  aimed  at  proceedings  which 
were  illustrated  by  rules  of  law  against  agreements 
between  bidders  at  public  auctions.  After  quoting 
the  terms  of  the  Anglo-German  bankers'  agreement 
to  which  Dr.  Koo  had  referred,  Mr.  Root  said  that  he 
was  of  opinion  that  no  two  groups  of  bankers  ought 
to  be  able  to  commit  their  Governments  in  that  way, 
and  that  it  ought  to  be  understood  that  they  could  not. 

Baron  Shidehara  repeated  the  statement  of  his 
opinion  that  the  matter  had  been  covered  by  the  Open 
Door  resolution  previously  adopted,  whereupon  Mr. 
Balfour  pointed  out  that  if  the  objection  related  only 
to  a  matter  of  repetition,  it  was  surely  not  a  serious 
one.  The  Chairman  then  put  the  resolution  to  vote 
and  it  was  unanimously  carried. 

Baron  de  Cartier  queried  whether,  by  giving  noti- 
fication of  a  private  contract  upon  the  part  of  the 


270  CHINA  AT  THE  CONFERENCE 

nationals,  a  government  might  not  be  giving  to  that 
contract  a  status  or  dignity  which  it  might  not 
deserve. 

Dr.  Koo  reserved  the  right  of  China  during  a 
public  war  to  which  she  was  a  party,  to  refuse  publi- 
cations of  texts  of  agreements  for  the  purchase  of 
arms  and  munitions.  That  to  publish  such  contracts 
might  be  seriously  de'trimental  to  her  was  obvious. 
This  reservation,  however,  he  said,  was  not  intended 
to  apply  to  times  of  civil  war. 

Mr.  Balfour  suggested  that  the  words  "  or  a  finan- 
cial obligation  on  the  part  of  that  Govermnent  or  of 
the  provinces  exceeding  $1,000,000  silver,"  should  be 
omitted  from  the  resolution,  as  this  provision 
appeared  to  have  no  reference  to  questions  of  monop- 
oly or  undue  preference. 

Senator  Underwood  expressed  some  doubt  as  to  the 
desirability  or  possibility  of  publishing  agreements 
by  individuals  or  concerns  which  might  result  in 
making  public  trade  secrets  or  private  contracts.  Mr. 
Root  said. that  he  agreed  in  general  with  Senator 
Underwood  as  to  the  requirement  of  publicity  for 
trade  agreements,  but  that,  as  he  understood  it,  the 
resolution  was  aimed  at  a  distinct  class  of  contracts 
in  which,  upon  the  one  side,  there  was  a  Government 
officer  executing  a  trust  for  the  public.  In  regard  to 
these  the  only  practical  method  yet  discovered  for 
securing  honesty  and  fairness  and  just  representation 
of  the  public  was  to  make  them  known  to  the  world. 
What  was  being  attempted,  he  said,  was  to  help,  as 
far  as  possible,  the  development  of  government  in 
China  by  means  of  self-denying  ordinances  on  the 


CHINA'S"  COMMITMENTS  271 

part  of  the  Powers,  in  order  to  restrain  their  own 
nationals  from  taking  advantage  of  the  disturbed 
conditions  in  China  to  secure  preferences  and  advan- 
tages which  would  be  injurious  to  China  herself.  He 
understood  that  the  purpose  of  the  resolution  was,  in 
an  indirect  way,  to  make  certain  that  public  contracts, 
made  by  public  officers  of  whatever  kind  in  China, 
would  be  made  public,  and  that  there  would  thus  be 
a  check  upon  the  transaction  of  public  business  in 
China  which,  at  some  future  time,  China  herself 
would  provide  for  by  her  own  laws. 

Resolutions  Adopted.  As  a  result  of  these  dis- 
cussions the  resolution  as  to  the  publishing  and  listing 
of  commitments  was  given  the  following  form  and  in 
that  form  unanimously  approved  by  the  Committee : 

The  Powers  represented  in  this  Conference,  considering  it  desir- 
able that  there  should  hereafter  be  full  publicity  with  respect  to  all 
matters  affecting  the  political  and  other  international  obligations 
of  China  and  of  the  several  Powers  in  relation  to  China,  are  agreed 
as  follows : 

I.  The  several  Powers  other  than  China  will  at  their  earliest 
convenience  file  with  the  Secretariat  General  of  the  Conference  for 
transmission  to  the  participating  Powers,  a  list  of  all  treaties,  con- 
ventions, exchange  of  notes,  or  other  international  agreements  which 
they  may  have  with  China,  or  with  any  other  Power  or  Powers  in 
relation  to  China,  which  they  deem  to  be  still  in  force  and  upon 
which  they  may  desire  to  rely.  In  each  case,  citations  will  be  given 
to  any  official  or  other  publication  in  which  an  authoritative  text  of 
the  documents  may  be  found.  In  any  case  in  which  the  document 
may  not  have  been  published,  a  copy  of  the  text  (in  its  original 
language  or  languages)  will  be  filed  with  the  Secretariat  General  of 
the  Conference. 

Every  treaty  or  other  international  agreement  of  the  character 
described  which  may  be  concluded  hereafter  shall  be  notified  by  the 


272  CHINA  AT  THE  CONFERENCE 

Governments  concerned  within  sixty  (60)  days  of  its  conclusion  to 
the  Powers  who  are  signatories  of  or  adherents  to  this  agreement. 

II.  The  several  Powers  other  than  China  will  file  with  the  Secre- 
tariat General  of  the  Conference  at  their  earliest  convenience  for 
transmission  to  the  participating  Powers  a  list,  as  nearly  complete 
as  may  be  possible,  of  all  those  contracts  between  their  nationals, 
of  the  one  part,  and  the  Chinese  Government  or  any  of  its  adminis- 
trative subdivisions  or  local  authorities,  of  the  other  part,  which 
involve  any  concession,  franchise,  option  or  preference  with  respect 
to  railway  construction,  mining,  forestry,  navigation,  river  con- 
servancy, harbor  works,  reclamation,  electrical  communications,  or 
other  public  works  or  public  services,  or  for  the  sale  of  arms  or  ammu- 
nition, or  which  involve  a  lien  upon  any  of  the  public  revenues  or 
properties  of  the  Chinese  Government  or  of  any  of  its  administrative 
subdivisions.  There  shall  be,  in  the  case  of  each  document  so  listed, 
either  a  citation  to  a  published  text,  or  a  copy  of  the  text  itself. 

Every  contract  of  the  public  character  described  which  may  be 
concluded  hereafter  shall  be  notified  by  the  Governments  concerned 
within  sixty  (60)  days  after  the  receipt  of  information  of  its  con- 
clusion to  the  Powers  who  are  signatories  of  or  adherents  to  this 
agreement. 

III.  The  Chinese  Government  agrees  to  notify  in  the  conditions 
laid  down  in  this  agreement  every  treaty  agreement  or  contract  of 
the  character  indicated  herein  which  has  been  or  may  hereafter  be 
concluded  by  that  Government  or  by  any  local  authority  in  China 
with  any  foreign  Power  or  the  nationals  of  any  Foreign  Power 
whether  party  to  this  agreement  or  not,  so  far  as  the  information 
is  in  its  possession. 

IV.  The  Governments  of  Powers  having  treaty  relations  with 
China,  which  are  not  represented  at  the  present  Conference,  shall 
be  invited  to  adhere  to  this  agreement. 

The  United  States  Government,  as  convener  of  the  Conference, 
understakes  to  communicate  this  agreement  to  the  Governments  of 
the  said  Powers,  with  a  view  to  obtaining  their  adherence  thereto 
as  soon  as  possible. 

Additional  Resolution  moved  by  Mr.  Root. 


CHINA'S  COMillTMEXTS  273 

Resolved,  That  the  Signatory  Powers  will  not  support  any  agree- 
ments by  their  respective  nationals  with  each  other  designed  to 
create  Spheres  of  Influence  or  to  provide  for  the  enjoyment  of  exclu- 
sive opportunities  in  designated  parts  of  Chinese  territory. 

At  the  fifth  plenary  session,  held  February  1,  these 
resolutions  were  unanimously  approved  by  the  Con- 
ference. 

Commitments  without  Time  Limits.  The  Chinese 
Delegation,  among  the  Ten  Points  which  it  submitted 
to  the  Conference,  asked  that  reasonable  definite 
terms  of  duration  should  be  attached  to  China's  exist- 
ing commitments  which  were  without  time  limits. 

This  request  was  brought  before  the  Committee  of 
the  Whole  by  Dr.  Koo  at  its  twenty-fourth  meeting, 
held  January  23.  The  Chairman,  Secretary  Hughes, 
called  attention  to  the  fact  that  there  were  manifestly 
certain  commitments  which  were  intended  to  be  with- 
out time  limit, — examples  of  such  commitments  were 
the  agreement  of  the  Powers  to  recognize  the  terri- 
torial and  administrative  integrity  of  China,  and 
their  commitments  regarding  fair  dealing  with  each 
other,  the  abstention  from  seeking  special  privileges 
at  the  expense  of  each  other,  and  the  like.  He  asked, 
therefore,  that  Dr.  Koo  should  state  more  specifically 
the  commitments  to  which  he  desired  a  time  limit  to 
be  set. 

Replj^ng  to  this,  Dr.  Koo  said  that  it  had  been  the 
intention  of  the  Chinese  Delegation,  not  that  time 
limits  should  be  set  to  all  commitments  which,  by  their 
terms,  were  without  time  limit,  but  that,  when  it  was 
essentially  just  or  expedient  to  do  so,  in  view  of  one 
or  the  other  of  the  parties  to  the  commitment,  it 
19 


274  CHINA  AT  THE  CONFERENCE 

should  be  done.  The  proposition  which  the  Chinese 
Delegation  had  made  was  that  this  desideratum 
should  be  borne  in  mind  by  any  committee  and  other 
body  that  might  be  created  in  order  to  bring  existing 
commitments  into  harmony  with  one  another  or  with 
the  principles  adopted  by  the  Conference. 

In  the  discussion  that  followed  it  appeared  that  it 
was  the  general  opinion  of  the  Committee  that  this 
matter  was  one  which  China  should  take  up  with  the 
parties  directly  concerned  in  each  case.  The  Chinese 
Delegation  therefore  did  not  deem  it  expedient  to 
press  further  the  point. 

Construction  of  Commitnients.  Among  the  re- 
quests made  by  the  Chinese  Delegation  in  the  Ten 
Points  which  it  submitted  to  the  Conference  was  that, 
in  the  interpretation  of  instruments  granting  special 
rights  or  privileges,  the  well-established  principle  of 
construction  should  be  observed  that  such  grants 
should  be  strictly  construed  in  favor  of  the  grantors. 

This  matter  was  brought  before  the  Committee  at 
the  same  time  that  the  question  of  commitments  with- 
out time  limits  was  presented.  It  received,  however, 
practically  no  discussion.  The  Chairman  ruled  that, 
in  his  opinion,  it  was  not  desirable  to  adopt  an  ab- 
stract principle,  that  is,  one  without  regard  to  the 
specific  agreements  to  which  it  was  applied,  and  this 
opinion  seemed  to  be  shared  by  the  other  Delegations 
— at  any  rate  no  dissent  to  it  was  recorded. 

China's  Ninth  and  Tenth  Points.  The  ninth  and 
tenth  of  the  points  presented  by  the  Chinese  Dele- 


CHINA'S  COMMITMENTS  275 

gation  to  the  Conference  on  November  16  were  as 
follows : 

9.  Provision  is  to  be  made  for  the  peaceful  settlement  of  inter- 
national disputes  in  the  Pacific  and  the  Far  East. 

10.  Provision  is  to  be  made  for  future  Conferences  to  be  held 
from  time  to  time  for  the  discussion  of  international  questions  rela- 
tive to  the  Pacific  and  the  Far  East,  as  a  basis  for  the  determination 
of  common  policies  of  the  Signatory  Powers  in  relation  thereto. 

These  t«^o  propositions,  though  presented  by  China, 
had,  in  fact,  no  exclusive  relation  to  China,  but  ex- 
hibited a  wish  upon  her  part  that,  with  reference  to 
all  the  questions  of  the  Pacific  and  Far  East,  the 
Conference  should  make  provision  for  the  peaceful 
settlement  of  all  future  controversies  that  might  arise 
between  the  Powers  concerned.  The  fact,  therefore, 
that  the  Conference  took  no  affirmative  action  regard- 
ing them  was  not  a  denial  to  China  of  rights  to  which 
she  thought  herself  entitled,  but  only  a  general  opin- 
ion that,  with  reference  generally  to  the  political  situ- 
ation in  the  Pacific  and  Far  East  it  was  not  feasible, 
at  that  time,  to  create  arbitral  or  other  specific  instru- 
mentalities for  the  settlement  of  such  international 
controversies  as  might  arise.  The  Conference  did, 
however,  as  has  been  earlier  seen,  make  provision  for 
a  Board  of  Reference  which  should  be  empowered  to 
consider  and  report  upon  questions  that  might  be 
referred  to  it  regarding  the  Open  Door  and  discrimi- 
nations upon  the  Chinese  Railways  as  provided  for 
in  the  Nine  Power  Treaty  Relating  to  the  Principles 
and  Policies  to  be  Followed  in  Matters  Concerning 
China.  Also  is  to  be  noted  Article  VII  of  the  Nine 
Power  Treaty  according  to  which  the  Powers  agree 


276  CHINA  AT  THE  CONFERENCE 

that,  whenever  a  situation  arises  involving,  in  the 
opinion  of  any  one  of  them,  the  application  of  the 
stipulations  of  that  treaty,  and  which  renders  desir- 
able a  discussion  of  such  application,  there  shall  be 
a  full  and  frank  communication  between  the  contract- 
ing Powers  concerned. 

At  the  twenty-fourth  meeting  of  the  Committee  of 
the  Whole,  the  Chairman,  Secretary  Hughes, 
referred  to  the  fact  that  China  was  a  member  of  the 
permanent  court  of  arbitration  at  The  Hague,  and 
that,  so  far  as  concerned  controversies  between 
nations  which  were  susceptible  of  settlement  accord- 
ing to  judicial  standards,  he  doubted  whether  it  was 
desirable  to  duplicate  already  existing  machinery. 

At  the  last  (thirty-first)  meeting  of  the  Committee, 
Mr.  Sze  said  that,  in  view  of  Article  VII  of  the  Nine 
Power  Treaty,  the  Chinese  Delegation  desired  to 
withdraw  the  ninth  and  tenth  of  its  proposals.  This 
Article,  he  said,  amply  covered  Avhat  the  Chinese 
Delegation  had  in  mind  when  it  proposed  them. 


CHAPTER  XXIII 
Shantung 


As  is  well  known,  the  long  pending  controversy 
between  China  and  Japan  with  reference  to  the 
rights  claimed  by  Japan  in  and  over  the  leased  area, 
of  Kiaochow  and  in  the  Province  of  Shantung  was 
not  settled  in  the  committee  room  of  the  Conference, 
but  was  adjusted  in  connection  with  that  Conference 
by  **  Conversations  "  entered  into  between  the  Chi- 
nese and  Japanese  Delegations  under  the  * '  good  offi- 
ces "  of  Secretary  Hughes  and  Mr.  Balfour.  That 
these  Conversations  had  been  entered  upon  was  re- 
ported to  the  Conference  and  several  times  referred 
to  in  the  proceedings  of  that  body,  and,  when  an 
agreement  was  finally  reached,  the  fact  was  reported 
to  the  Conference  by  its  Chairman,  and  the  text  of 
the  agreement  spread  upon  its  official  records. 

At  the  tenth  meeting  of  the  Committee  of  the 
Whole,  held  November  30,  Baron  Kato  announced 
that,  through  the  kind  offices  of  Secretary  Hughes  and 
Mr.  Balfour  and  at  their  suggestion  and  arrangement, 
conversations  were  to  be  entered  upon  with  a  view  to 
the  settlement,  if  possible,  of  the  questions  relating 
to  Shantung.  Secretary  Hughes  said  that  it  had  been 
a  keen  pleasure  both  to  himself  and  to  Mr.  Balfour 
to  make  this  suggestion,  and  Mr.  Sze  made  the  fol- 
lowing statement : 

277 


278  CHINA  AT  THE  CONFERENCE 

The  Chinese  delegation  has  not  solicited  or  asked  for  the  meeting 
of  the  Chinese  and  Japanese  delegations,  as  the  Government  and 
people  of  China  have  always  hoped  to  be  able  to  present  this  very 
important  question  to  the  consideration  of  the  conference,  not  with 
any  desire  to  add  to  the  labors  of  the  conference  or  to  embarrass  any 
delegation  interested  in  this  question,  but  merely  in  the  hope  of 
obtaining  a  fair  and  just  settlement.  The  Chinese  Government, 
however,  deeply  appreciates  the  friendly  sympathy  and  interest  which 
Mr.  Hughes  and  Mr.  Balfour,  representing  two  great  powers  equally 
friendly  to  China  and  Japan,  have  manifested  in  offering  their 
good  offices,  and  the  Chinese  delegation,  therefore,  have  the  pleasure 
of  accepting  the  kind  offer,  of  course,  in  the  hope  that  a  fair  and 
just  settlement  may  be  soon  reached  and  reported  to  the  Conference, 
and  without  qualifying  its  freedom  to  seek  other  methods  of  settle- 
ment in  the  unhappy  event  of  inability  to  reach  an  agreement  for 
a  fair. and  just  settlement. 

When,  at  its  fifth  plenary  session,  held  February 
1, 1922,  the  Shantung  Agreement  was  reported  to  the 
Conference,  its  Chairman,  Secretary  Hughes,  said: 

While  the  work  of  the  Conference  and  of  its  Committees  has  been 
in  progress.  Conversations  have  been  had  between  the  representatives 
of  China  and  Japan  for  the  purpose  of  settling  the  controversy 
which  has  arisen  in  relation  to  Shantung.  I  am  happy  to  be  able 
to  announce  to  the  Conference  that  I  have  been  informed  by  the 
representatives  of  the  Governments  of  China  and  Japan  that  this 
controversy  has  been  settled.  I  now  propose  to  communicate  to 
the  Conference  the  terms  of  settlement  as  they  have  been  agreed 
upon  by  the  representatives  of  the  two  Governments. 

Mr.  Sze,  in  behalf  of  his  Government  and  of  the 
Chinese  people,  expressed  the  thanks  of  the  Chinese 
Delegation  for  the  extension  of  the  good  offices  by 
Secretary  Hughes  and  Mr.  Balfour,  which,  he  said, 
had  made  possible  the  Shantung  conversations.  He 
continued : 


SHANTUNG  279 

His  Excellency,  the  President  of  the  United  States,  in  his  invita- 
tion to  the  Powers  to  attend  the  Conference,  expressed  the  hope 
that  through  the  facilities  of  intercourse  which  it  would  provide, 
it  might  be  possible  to  arrive  at  understandings  with  respect  to 
matters  which  have  been  of  international  concern,  and  thus  to  pro- 
mote enduring  friendship  among  the  nations  whose  interests  have 
been  involved.  Animated  by  the  same  hope  and  desire,  the  Chinese 
Delegation,  in  the  conversations  which  were  held,  with  the  valuable 
assistance  of  observers  so  kindly  designated  by  Mr.  Hughes  and  by 
Mr.  Balfour,  sought  to  accommodate  its  views,  so  far  as  it  could  con- 
sistently with  China's  rights  and  legitimate  interests,  to  those  of 
the  Japanese  Delegation,  in  order  that  a  meeting  of  minds  might 
be  arrived  at  and  a  program  provided  whereby  an  end  might  be  put 
to  the  controversy  which  not  only  has  disturbed  the  friendly  rela- 
tions between  the  Chinese  and  Japanese  people  but  has  furnished 
a  cause  of  concern  to  the  other  Powers. 

This  hope  and  this  desire  upon  the  part  of  the  Chinese  Govern- 
ment and  of  the  Chinese  people  now  appears  certain  to  be  realized. 
Such  a  program  has  found  embodiment  in  the  series  of  agreements 
and  understandings  which  are  to  be  incorporated  into  a  treaty  to 
be  signed  by  the  Governments  of  China  and  Japan. 

The  Chinese  Delegation  rejoices  in  the  settlement  of  this  question 
not  only  because  a  source  of  friction  between  its  Government  and 
that  of  Japan  has  been  removed,  but  because  the  Chinese  Govern- 
ment is  thus  able  to  aid  in  the  realization  of  the  beneficent  aim  for 
the  attainment  of  which  this  Conference  was  convened. 

It  will  be  remembered  that  it  was  upon  this  occa- 
sion that  Mr.  Balfour  declared  the  intention  of  the 
British  Government  to  surrender  to  China  the  leased 
area  of  Weihaiwei. 

At  the  sixth  plenary  session,  Secretary  Hughes 
announced  to  the  Conference  that  the  Shantung 
agreement  which  he  had  previously  reported,  had 
been  put  into  final  treaty  form  and  was  ready  for 
signature  by  the  representatives  of  the  Governments 


280  CHINA  AT  THE  CONFERENCE 

of  China  and  Japan.  These  signatures  were  attached 
on  February  4. 

Reasons     for     Resorting     to     the     Conversations. 

Whether  or  not  the  Chinese  Delegation  should  enter 
upon  the  Shantung  Conversations  was  not  an  easy 
one  for  its  members  to  decide.  Upon  the  one  hand, 
there  had  been  an  insistent  demand  upon  the  part  of 
the  articulate  elements  of  the  Chinese  population  that 
the  Chinese  Government  should  not  enter  upon  any 
direct  negotiations  that  would,  in  any  way,  imply 
that  the  Japanese  had  rights  in  Shantung  such  as 
would  furnish  a  basis  for  negotiation,  and  that  the 
whole  question  should  be  taken  to  the  Conference 
with  a  view  to  obtaining  its  action  thereupon.  Upon 
the  other  hand,  there  was  every  reason  to  believe  that, 
should  this  latter  be  taken,  no  remedial  results  would 
be  obtained,  vnth.  the  result  that  the  Japanese  would 
be  left  in  still  firmer  possession  of  the  leased  area  of 
Kiaochow,  the  Shantung  Railway  and  other  interests 
in  the  Province,  and  vdth  little  likelihood  that  thej' 
would  be  dispossessed  in  the  near  future,  if  ever. 

How  futile  would  have  been  the  hope  of  securing 
action  on  the  Shantung  Question  by  the  Conference 
favorable  to  China  w^as  made  plain — if  indeed,  it  had 
not  been  abundantly  plain  before, — in  a  debate  in  the 
United  States  Senate  upon  a  Resolution,  introduced 
by  Senator  Walsh  of  Montana  calling  upon  the  Presi- 
dent of  the  United  States  to  state  what  steps  had  been 
taken  by  the  American  Government  to  give  effect  to 
various  declarations  which  it  had,  from  time  to  time, 
made  with  reference  to  Japan's  actions  in  and  to- 
wards China. 


SHANTUNG  281 

In  that  debate,  held  on  January  20, 1922,  two  of  the 
American  Delegates  to  the  Washington  Conference, 
Senators  Underwood  and  Lodge,  stated  in  terms  that 
could  not  be  misimderstood  that,  should  the  Shantung 
Question  be  brought  before  the  Conference,  China 
could  not  expect  any  favorable  action.  If  this  was 
the  feeling  of  the  American  Delegation,  it  could  be 
predicted  what  the  action  of  the  other  Delegations 
would  be.    Senator  Underwood  said : 

The  attitude  of  the  American  Delegation  at  the  Conference  now 
being  held  in  Washington  has  been  exactly  in  accord  with  the  repre- 
sentations made  by  the  Government  of  President  Wilson  and  the 
Government  of  President  Harding,  The  question  has  not  been 
directly  before  the  Conference,  and  manifestly  it  cannot  come  before 
the  Conference  until  it  is  settled  between  the  Governments  of  China 
and  Japan,  because  seven  of  the  Powers  sitting  in  the  Conference 
are  signatory  to  the  Treaty  of  Versailles,  and,  of  course,  cannot 
deny  the  conclusions  reached  in  that  treaty  with  reference  to  this 
[Shantung]  territory  until  an  agreement  is  reached  between  China 
and  Japan,  Therefore,  seven  of  the  Powers  are  unable  to  discuss 
the  question  as  between  Japan  and  China  because  they  have  already 
committed  themselves  by  treaty. 

Senator  Lodge  was  equally  explicit  upon  this  point. 
He  said : 

I  am  in  thorough  accord  with  what  the  Senator  [Underwood] 
has  said  ....  The  question  is  not  directly  before  the  Conference, 
for  the  reason  that  seven  of  the  Powers  are  committed  by  the  treaty 
[of  Versailles],  and  the  matter  must  be  worked  out  between  the 
Republic  of  China  and  the  Empire  of  Japan  before  the  Conference 
tan  do  anything.    If  they  can  reach  an  agreement,  then  the  other 

Powers  can  come  in  and  ratify  it  and  stand  upon  it I  can 

give  my  assurance  to  the  Senator  [Walsh]  and  the  Senate  that  so 
far  as  the  American  Delegation  is  concerned,  they  are  using  every 
effort  they  legitimately  and  properly  can  to  bring  about  a  settle- 
ment along  the  lines  suggested  by  the  Senator  from  Montana. 


282  CHINA  AT  THE  CONFERENCE 

If  any  further  assurance  were  needed  that  the 
Chinese  Delegation  would  have  made  a  serious  mis- 
take had  they  insisted  upon  bringing  the  Shantung 
Question  before  the  Conference,  before  seeking  an 
agreement  mth  Japan  outside  of  but  collateral  to  the 
Conference,  the  results  obtained  from  the  presenta- 
tion to  the  Conference  of  the  other  portions  of  the 
Agreements  of  May  25,  1915,  with  Japan,  resulting 
from  Japan's  Twenty-One  Demands  upon  China, 
would  furnish  it.  As  has  been  already  seen,  the  pre- 
sentation of  those  Agreements  to  the  Conference  led 
to  no  other  concrete  results  than  the  surrender  by 
Japan  of  two  of  the  less  important  of  the  preferential 
rights  she  had  obtained  in  Manchuria,  and  to  the 
declaration  that  Group  V  of  her  original  demands 
were  no  longer  to  be  deemed  matters  postponed  for 
future  negotiations.  This  explicit  disclaimer  by 
Japan  was,  of  course,  not  without  its  importance, 
but  the  other  engagements  which  Japan  had  entered 
into  in  union  with  the  other  Powers  at  the  Confer- 
ence had  already  made  it  impossible  for  Japan,  with- 
out gross  bad  faith  again,  at  any  future  time,  to  press 
the  Group  V  demands. 

As  further  evidence  of  the  good  judgment  dis- 
played by  the  Chinese  Delegation  when  it  consented 
to  enter  upon  the  Shantung  Conversations  with  the 
Japanese  Delegation  are  the  following  facts  regard- 
ing the  Conversations  themselves. 

In  the  first  place,  these  Conversations  were  to  be 
held  at  Washington  and  while  the  Conference  was  in 
session.  This  meant  that  the  environment  was  to 
be  an  exceptionally  favorable  one  for  China — a  con- 


SHANTUNG  283 

sideration  which,  as  every  one  who  has  participated  in 
the  conduct  of  internal  relations  knows,  is  of  great 
importance.  At  this  Conference  Japan  was  definitely 
upon  the  defensive  and  striving  in  every  way  possible 
to  create  a  conviction  that  she  was  disposed  to  be  just 
and  reasonable  in  her  dealings  with  China.  The 
Conference  itself  had  for  its  purpose  the  removal, 
by  mutual  concession  upon  the  part  of  the  Powers 
concerned,  of  existing  causes  of  international  con- 
troversy in  the  Far  East,  and  thus  created,  as  it  were, 
a  general  atmosphere  that  was  favorable  to  a  settle- 
ment of  disputes  upon  which  the  Powers  were  not 
already  so  definitely  committed  that  no  change  of 
policy  upon  their  part  could  be  expected. 

In  the  second  place,  the  holding  of  these  Conversa- 
tions was  at  the  suggestion,  and  in  pursuance  of  the 
**  good  offices,'*  of  Secretary  Hughes,  the  head  of 
the  American  Delegation,  and  Mr.  Arthur  Balfour, 
the  head  of  the  British  Empire  Delegation,  and 
representatives  of  these  gentlemen  were  to  be  present 
at  all  the  Conversations  and  were  to  have  the  right, 
at  any  time,  to  interpose  with  friendly  suggestions. 
Finally,  the  results  of  the  Conversations  were  to  be 
reported  to  the  Conference,  and  thus  the  whole  pro- 
cedure, though  technically  not  in  the  Conference,  was 
to  be  connected  with  and  ancillary  to  that  body.' 

'  It  is  worthy  of  note  that  there  arose  at  one  time  during  the  Conversa- 
tions a  difference  of  view  between  the  Chinese  and  Japanese  representatives 
as  to  the  manner  in  which,  or  the  extent  to  which,  the  "  good  offices  "  of 
Secretary  Hughes  and  Mr.  Balfour  might  be  availed  of. 

At  the  nineteenth  meeting,  held  January  5,  when  it  seemed  that  an 
impoKse  had  been  reached,  the  Chinese  representatives  suggesteii  that  the 
friendly  offices  of  Secretary  Hughfs  and  Mr.  Balfour  should  be  resorted  to. 
At  the  next  meeting,  held  January  6,  Baron  Shidehara  said  that  the  instruc- 


284  CHINA  AT  THE  CONFERENCE 

Scope  of  the  Conversations.  One  further  fact 
regarding  the  Conversations  requires  to  be  men- 
tioned. This  is,  that,  in  entering  upon  them,  the 
Chinese  Government  was  not  required  to  make  any 
admissions  or  concessions  regarding  the  legal  or 
treaty  rights  of  the  Japanese  Government  or  of  its 
nationals  in  Shantung.  Before  the  Conversations 
were  begun  it  was  definitely  understood  between  the 
two  Delegations  that  the  discussions  should  be  upon 
what  was  termed  a  purely  de  facto  basis,  that  is,  no 
arguments  should  be  based  upon  legal  as  distin- 
guished from  equitable  or  factual  premises.    In  other 

tions  from  Tokyo  were  so  explicit  regarding  the  matter  at  issue  that  the 
Japanese  Delegation  was  not  in  a  position  to  solicit  these  good  offices. 
Dr.  Koo  then  said  that  it  had  been  the  understanding  of  the  Chinese 
Delegates  that  the  Conversations  had  been  entered  upon  because  of  the 
offer  of  these  good  offices,  which  offer  they  regarded  as  continuing  in 
character  and  therefore  available  at  any  time.  That  this  was  so  he  argued 
from  the  fact  that  representatives  of  both  Secretary  Hughes  and  Mr. 
Balfour  were  present  at  all  the  meetings,  and  that,  at  the  opening  meeting, 
both  of  these  gentlemen  had  said  that  they  would  be  ready  at  any  time, 
should  occasion  arise,  to  extend  their  good  offices,  and  that,  for  this  offer, 
they  had  been  thanked  by  the  Japanese  representatives.  At  the  opening 
meeting  Mr.  Balfour  had  said  that  "  he  joined  Mr.  Hughes  in  saying  that 
if,  in  the  course  of  the  Conversations,  any  circumstances  should  come  to 
pass  which  called  for  friendly  intervention  on  their  part,  it  would  be  his 
great  pleasure  to  offer  his  services.  He  was  in  that  case  entirely  at  the 
disposal  of  Mr.  Hughes  and  the  representatives  of  Japan  and  China." 
Mr.  Hughes  said  that  "  he  was  in  full  accord  with  Mr.  Balfour  in  offering 
services  whenever  needed." 

To  the  suggestion  upon  the  part  of  the  Chinese  representatives  that  the 
good  offices  should  be  resorted  to,  Baron  Shidehara  replied  that  his  Dele- 
gation was  not  in  a  position  to  request  them.  Dr.  Koo  then  asked  that 
Mr.  Hughes  and  Mr.  Balfour  be  invited  to  attend  the  next  meeting.  To 
this  Baron  Shidehara  said  that  his  Delegation  would  not  object  to  their 
presence,  but  they  would  not  invite  them  to  come,  and  that  he  did  not  see 
how  they  would  be  disposed  to  participate  unless  invited  by  both  Dele- 
gations— that  without  such  invitation  their  participation  would  amount  to 
intervention. 


SHANTUNG  285 

words,  neither  the  Chinese  nor  the  Japanese  were  to 
rely  upon  the  terms  of  existing  Sino- Japanese  treaties 
or  other  agreements,  nor  were  the  Japanese  to  base 
any  of  their  contentions  upon  the  provisions  of  the 
Treaty  of  Versailles.  For  the  purposes  of  the  Con- 
versations the  situation  was  thus  reduced  to  this: 
Japan  was  in  possession  and  exercising  certain 
powers  or  rights  in  Shantung,  but  was  ready  to  sur- 
render them,  or  most  of  them,  to  the  Chinese  upon 
certain  conditions.  Should  these  conditions  be  ac- 
cepted by  the  Chinese  the  whole  controversy  was  to 
be  considered  closed.  The  purpose  and  scope  of  the 
Conversations  was  therefore  to  determine  whether 
or  not  the  two  parties  could  arrive  at  an  agreement 
as  to  these  conditions.  It  was  further  agreed  that 
all  of  the  matters  involved  in  the  Shantung  contro- 
versy were  to  be  deemed  interdependent  in  the  sense 
that  unless  agreements  were  reached  as  to  them  all 
there  was  to  be  no  agreement  whatever. 

The  foregoing  explanations  will  show  how  far  the 
Shantung  Conversations  were  from  being  the  same  as, 
or  equivalent  to,  the  direct  negotiations  between  the 
two  Governments  which  Chinese  Government  had 
previously  refused  to  enter  upon,  and  in  opposition 
to  which  Chinese  public  opinion  had  so  loudly  spoken. 

The  Status  of  the  Shantung  Question.  The  general 
features  of  the  Shantung  Question  are  so  well  known 
to  the  world  that  only  the  briefest  statement  of  them 
will  be  here  required.  It  will  be  necessary,  however, 
to  speak  with  somewhat  more  particularity  regarding 
the  status  of  the  controversy  after  the  Treaty  of 


286  CHINA  AT  THE  CONFERENCE 

Versailles  and  at  the  time  the  Conversations  were 
initiated  in  Washington. 

It  will  be  remembered  that,  in  1914,  Japan,  in  pur- 
suance of  what  she  affirmed  to  be  her  obligation  under 
the  Anglo-Japanese  Alliance,  sent  a  military  expedi- 
tion against  the  German  leased  area  of  Kiaochow  at 
the  Eastern  end  of  Shantung  Province;  that,  in  the 
military  operations  thus  carried  on,  Japan  paid  no 
attention  to  the  rights  of  China  as  a  neutral  State, 
and  not  only  occupied  the  leased  area  with  the  impor- 
tant city  and  port  of  Tsingtao,  but  took  military  pos- 
session of  the  entire  length  of  the  railway  running 
from  Tsingtao  to  the  capital  of  the  Province 
Tsinanfu,  a  distance  of  nearly  three  hundred  miles, 
where  it  joined  with  the  important  railways  running 
from  the  north,  through  Peking  and  Tientsin  to 
Shanghai ;  ^  that  Japan  also  took  possession  of,  and 
operated,  certain  mines  formerly  German  owned; 
that  Japan  took  possession  of  other  mines  that  had 
not  been  so  owned;  that  she  erected  radio  stations, 
and  stationed  troops  at  various  points  in  the  Prov- 
ince ;  that,  in  one  way  or  another,  her  nationals  came 
into  possession  and  claimed  ownership  of  consider- 
able amounts  of  real  estate  in  the  Province ;  that  the 
operation  of  such  public  enterprises  as  the  electric 
lighting,  telephone,  water  and  laundry  services  was 
carried  on  under  Japanese  authority;  and  finally, 
that  Japan  had  gone  so  far  as  to  assume  and  exercise, 
at  various  places,  civil  governmental  rights  such  as 
could  properly  be  claimed  only  by  a  territorial  sover- 

*This  Shantung  Railway  was  owned   and   operated   by   a   corporation 
chartered  by  the  German  Empire.    A  few  of  its  shares  were  Chinese  owned. 


SHANTUNG  287 

eign.  In  short,  Japan  had  assumed  and  exercised 
powers  within  Shantung  that  were  in  considerable 
excess  of  those  that  had  been  claimed  or  exercised 
by  Germany.' 

In  1915  had  come  the  Twenty-One  demands  by 
Japan  upon  China  which  resulted  in  the  Agreements 
of  May  25,  1915,  among  which  was  the  treaty  which 
provided : 

Article  1.  The  Chinese  Government  agrees  to  give  full  assent 
to  all  matters  upon  which  the  Japanese  Government  may  hereafter 
agree  with  the  German  Government  relating  to  the  disposition  of 
all  rights,  interests  and  concessions  which  Germany,  by  virtue  of 
treaties  or  otherwise,  possesses  in  relation  to  the  Province  of 
Shantung. 

Article  2.  The  Chinese  Government  agrees  that  as  regards  the 
railway  to  be  built  by  China  herself  from  Chefoo  or  Ijungkow  to 
connect  with  the  Kiaochow-Tsinanfu  railway,  if  Germany  abandons 
the  privilege  of  financing  the  Chefoo- Weihsien  line,  China  will  ap- 
proach Japanese  capitalists  to  negotiate  for  a  loan. 

Article  3.  The  Chinese  Government  agrees  in  the  interest  of 
trade  and  for  the  residence  of  foreigners,  to  open  by  China  herself 
as  soon  as  possible  certain  suitable  places  in  the  Province  of  Shan- 
tung as  Commercial  Ports. 

In  connection  with  this  treaty  the  following  further 
agreement  was  entered  into  by  an  Exchange  of  Notes : 

When,  after  the  termination  of  the  present  war,  the  leased  terri- 
tory of  Kiaochow  Bay  is  completely  left  to  the  free  disposal  of 
Japan,  the  Japanese  Government  will  restore  the  said  leased  terri- 
tory to  China  under  the  following  conditions : 

*This  is  irrespective  of  such  other  matters  as  the  displacement  of 
Chinese  employees  on  the  railway  by  Japanese  nationals;  the  introduction 
of  vast  amounts  of  morphia  into  the  country,  the  export,  in  violation  of 
Chinese  law,  of  many  tons  of  copper  "  cash  " ;  and  the  assertion  of  special 
rights  with  reference  to  the  administration  of  the  Chinese  Maritime  Cus- 
toms service  at  Tsingtao. 


288  CHINA  AT  THE  CONFERENCE 

1.  The  whole  of  Kiaochow  Bay  to  be  opened  as  a  commercial  port. 

2.  A  Concession  under  the  exclusive  jurisdiction  of  Japan  to  be 
established  at  a  place  designated  by  the  Japanese  Government. 

3.  If  the  foreign  Powers  desire  it,  an  International  Concession 
may  be  established. 

4.  As  regards  the  disposal  to  be  made  of  the  buildings  and  prop- 
erties of  Germany  and  the  conditions  and  procedure  relating  thereto, 
the  Japanese  Government  and  the  Chinese  Government  shall  arrange 
the  matter  by  mutual  agreement  before  the  restoration. 

As  is  well  known,  because  of  the  circumstances 
under  which  the  Agreements  of  May  25,  1915,  were 
entered  into,  and  because  of  their  substantive  char- 
acter, the  people  of  China  have  ever  asserted  their 
right  to  escape  from  them  at  the  first  possible  oppor- 
tunity. 

On  September  24,  1918,  the  following  letter  from 
the  Japanese  Minister  for  Foreign  Affairs  was  sent 
to  the  Chinese  Minister  at  Tokyo: 

In  view  of  the  friendly  relations  existing  between  your  country 
and  Japan  and  in  pursuance  of  the  spirit  of  harmony  and  reconcilia- 
tion, the  Imperial  Government  considers  it  proper  that  the  various 
questions  in  Shantung  should  be  arranged  in  the  following  manner, 
and  has  decided  to  bring  the  matter  to  the  notice  of  your  Gov- 
ernment. 

With  regard  to  the  Japanese  troops  stationed  along  the  Kiaochow- 
Tsinan  Eailway,  all  the  troops  shall  be  concentrated  at  Tsingtao 
except  for  the  stationing  of  a  detachment  at  Tsinan. 

The  guarding  of  the  Kiaochow-Tsinan  Railway  is  to  be  undertaken 
by  your  Government  by  the  organization  of  a  police  force  for  the 
purpose. 

The  expenditure  required  for  the  maintenance  of  the  police  force 
shall  be  defrayed  by  the  Kiaochow-Tsinan  Railway. 

Japanese  shall  be  engaged  for  the  headquarters  of  this  police 
force,  at  the  principal  railway  stations  and  at  the  police  training 
school. 


SHANTUNG  289 

Chinese  are  to  be  engaged  as  employees  on  the  Kiaochow-Tsinan 
Railway. 

When  the  status  of  the  Kiaochow-Tsinan  Railway  shall  have  been 
established  it  shall  be  conjointly  worked  by  Japanese  and  Chinese. 

The  Civil  Administration  now  in  force  shall  be  abolished. 

I  shall  deem  it  a  great  favor  if  you  will  let  me  know  your  opinion 
concerning  the  above  matter. 

MacMurray  in  his  compilation  of  the  Treaties  and 
Agreements  with  and  Concerning  China  (p.  1445)  in 
a  footnote  to  the  text  of  the  foregoing  letter,  says 
that,  according  to  an  Associated  Press  dispatch  from 
Paris,  February  25,  1919,  the  Chinese  Minister 
rephed  to  the  letter,  saying:  **  I  beg  to  acquaint  you 
in  reply  that  the  Chinese  Government  gladly  agree 
to  the  proposals  of  the  Japanese  Government  above 
alluded  to." 

By  an  agreement  of  September  28,  1918,  between 
the  Chinese  Minister  to  Japan  and  the  Industrial 
Bank  of  Japan  representing  a  syndicate  of  Japanese 
banks,  the  Chinese  Government  was  represented  as 
agreeing  that  all  money  necessary  for  the  construc- 
tion of  railways  between  Tsinan  in  Shantung  and 
Shimte  in  Chihli  Province,  and  between  Kaomi  in 
Shantung  and  Hsuchow  in  Kiangsu  Province,  would 
})e  obtained  from  the  Japanese  banks  in  the  form  of 
gold  bonds,  with  the  proviso  that,  should,  after  sur- 
vey, the  railways  be  deemed  unprofitable  undertak- 
ings, the  Chinese  Government  should  confer  with 
the  banks  regarding  a  change  of  their  routes. 

As  is  also  well  known,  the  Treaty  of  Vei*sailles 
signed  by  the  Allied  Powers  with  Gennany,  was  not 
signed  by  China  because  it  contained  the  following 
20 


290  CHINA  AT  THE  CONFERENCE 

provisions  regarding  the  disposition  of  the  former 
German  rights  in  Shantung :  * 

Article  156.  Germany  renounces,  in  favour  of  Japan,  all  her 
rights,  title  and  privileges — particularly  those  concerning  the  terri- 
tory of  Kiaochow,  railways,  mines  and  submarine  cables — which  she 
acquired  in  virtue  of  the  Treaty  concluded  by  her  with  China  on 
March  6, 1898,  and  of  all  other  arrangements  relative  to  the  Province 
of  Shantung. 

All  German  rights  in  the  Tsingtao-Tsinanfu  Railway,  including 
its  branch  lines,  together  with  its  subsidiary  property  of  all  kinds, 
stations,  shops,  fixed  and  rolling  stock,  mines,  plant  and  material 
for  the  exploitation  of  the  mines,  are  and  remain  acquired  by  Japan, 
together  with  all  rights  and  privileges  attaching  thereto. 

The  German  State  submarine  cables  from  Tsingtao  to  Shanghai 
and  from  Tsingtao  to  Chefoo,  with  all  the  rights,  privileges  and 
properties  attaching  thereto,  are  similarly  acquired  by  Japan,  free 
and  clear  of  all  charges  and  encumbrances. 

Art.  157.  The  movable  and  immovable  property  owned  by  the 
German  State  in  the  territory  of  Kiaochow,  as  well  as  all  the  rights 
which  Germany  might  claim  in  consequence  of  the  works  or  im- 
provements made  or  of  the  expenses  incurred  by  her,  directly  or 
indirectly,  in  connection  with  this  territory,  are  and  remain  acquired 
by  Japan,  free  and  clear  of  all  charges  and  encumbrances. 

Art.  158.  Germany  shall  hand  over  to  Japan  within  three  months 
from  the  coming  into  force  of  the  present  Treaty  the  archives, 
registers,  plans,  title-deeds  and  documents  of  every  kind,  wherever 
they  may  be,  relating  to  the  administration,  whether  civil,  military, 
financial,  judicial  or  other,  of  the  territory  of  Kiaochow. 

Within  the  same  period  Germany  shall  give  particulars  to  Japan 
of  all  treaties,  arrangements  or  agreements  relating  to  the  rights, 
title  or  privileges  referred  to  in  the  two  preceding  Articles. 

For  the  purposes  of  this  chapter  it  is  not  necessary 
to  review  the  grounds  upon  which  the  Chinese  Gov- 
ernment refused  to  recognize  the  operative  force  of 

*  These  provisions  also  played  a  considerable  part  in  the  refusal  of  the 
United  States  to  sign  the  treaty. 


SHANTUNG  291 

the  foregoing  provisions  of  the  Versailles  Treaty. 
Of  course  China,  not  being  a  signatory  party  to  that 
treaty,  could  not  be  bound  by  its  provisions  taken  by 
themselves.  This  none  of  the  Powers,  including 
Japan,  could  claim.  It  was,  however,  asserted  that, 
independently  of  that  treaty,  and  prior  to  it,  namely 
by  the  Shantung  Treaty  of  May  25,  1925,  China  had 
agreed  to  abide  by  any  disposition  that  Germany 
might  make  of  her  Shantung  rights.  As  to  this  it  is 
sufficient  to  say  that  the  Chinese  Government  held 
that,  even  if  it  should  be  granted  arguendo  that  the 
Agreements  of  May  25, 1915,  were  binding  upon  itself, 
the  Shantung  treaty  had  ceased  to  have  any  force  in 
1919,  and,  furthermore,  that,  at  the  time  the  Paris 
Treaty  was  signed  Germany  had,  in  fact,  no  valid 
rights  in  Shantung — that  these  had  disappeared  when 
China  declared  war  against  Germany  and  announced 
that  thereby  all  treaties  between  herself  and  that 
country  were  abrogated. 

Correspondence  Between  China  and  Japan.      The 

statement  of  the  foregoing  facts  has  been  necessary 
in  order  to  explain  the  impasse  that  had  been  reached 
between  China  and  Japan  with  reference  to  the  pres- 
ence of  the  Japanese  in  Shantung.  Japan  wished  to 
negotiate  with  China  with  regard  to  a  definitive 
settlement  of  the  whole  controversy,  but  China  could 
not  consistently  do  this  so  long  as  Japan  insisted  that 
these  negotiations  should  be  predicated  upon  treaties 
and  other  agreements  the  validity  or  pertinency  of 
which  she,  China,  did  not  admit. 

In  a  statement  issued  at  Tokyo  on  June  15,  1920, 
the  Japanese  ministry  of  Foreign  Affairs  expressed 


292  CHINA  AT  THE  CONFERENCE 

the  regret  that,  though  it  had  sought  to  open  negotia- 
tions with  China  for  the  restoration  of  Kiaochow  to 
China  and  the  settlement  of  other  matters  relating 
thereto,  it  had  received  no  reply  to  its  communication 
of  January  24,  1920,  imtil  May  22,  when  the  Chinese 
Government  had  said  (in  part)  : 

The  Chinese  Government  have  noted  that  it  is  the  intention  of 
the  Japanese  Government  now  that  the  Treaty  of  Peace  [with 
Germany]  has  come  into  force  to  restore  Kiaochow  to  China  and  to 
prepare  for  the  withdrawal  of  the  troops  from  along  the  Kiaochow- 
Tsinanfu  Railway.  China,  however,  has  not  signed  the  Treaty  of 
Peace  with  Germany,  and  is  not  therefore  in  a  position  to  negotiate 
directly  with  Japan  on  the  question  of  Tsingtao  on  the  basis  of  that 
Treaty.  Furthermore,  as  the  Japanese  Minister  at  Peking  is  very 
well  aware,  the  whole  people  of  China  have  assumed  a  strongly 
antagonistic  attitude  in  regard  to  the  question  in  hand.  For  these 
two  reasons,  and  because  of  the  importance  they  have  attached  to 
amity  between  Japan  and  China,  the  Chinese  Government  naturally 
felt  it  inconvenient  to  make  a  reply  at  the  time.  On  the  other  hand, 
the  Japanese  military  establishments  within  and  without  the  leased 
territory  of  Kiaochow  have  been  rendered  unnecessary  and,  as  it  is 
the  hearty  desire  of  the  people  and  Government  of  China  to  have 
the  conditions  along  the  Shantung  Railway  restored  to  the  pre-war 
footing,  the  Chinese  Government  proposes  to  form  at  an  early  date 
a  proper  organization  to  take  the  place  of  the  Japanese  troops  in 
guarding  the  whole  line.  However,  this  proposition  has  nothing  to 
do  with  the  settlement  of  the  question  of  Kiaochow  and  the  Chinese 
Government  trust  that  the  Japanese  Government  will  not  delay  the 
withdrawal  of  the  troops  on  account  of  that  question. 

To  this  communication  the  Japanese  Government 
replied  by  asserting  that  the  Chinese  Government 
had  given  its  formal  agreem.ent  to  the  disposition 
that  might  be  made,  and  which  was  made  in  the 
Treaty  of  Versailles,  of  the  German  rights  in  Shan- 
tung.   As  to  the  withdrawal  of  its  troops  stationed  in 


SHANTUNG  293 

Shantung,  it  declared  that  this  was  but  one  of  the 
several  questions  to  be  determined  when  a  settlement 
of  the  Shantung  Question  as  a  whole  should  be 
reached/ 

Japanese  Note  of  September  7,  1921.  On  Septem- 
ber 7,  1921,  the  Japanese  Government  again  ad- 
dressed the  Chinese  Government  with  reference  to 
Shantung,  this  time  stating  specifically  the  conditions 
upon  which  it  was  prepared  to  settle  the  entire  con- 
troversy. As  these  conditions  and  the  Chinese  answer 
to  them  constituted,  in  considerable  measure,  the 
basis  upon  which  the  "  Conversations  "  were  carried 
on,  it  is  desirable  to  state  them  in  full.  They  were 
as  follows : 

1.  To  return  to  China  the  Lease  of  the  Kiaochow  Bay  Territory 
and  the  right  relating  to  the  Neutral  Zone. 

2.  In  case  the  Chinese  Government  on  its  own  initiative  throws 
open  the  entire  Leased  Territory  as  a  commercial  port,  recognizes 
the  liberty  of  residence,  commerce,  industry,  agriculture,  and  other 
lawful  undertakings  of  foreigners,  and  respects  and  recognizes  the 
vested  rights  of  foreigners,  the  Japanese  Government  agrees  to  the 
withdrawal  of  the  proposal  for  the  establishment  of  a  special  and 
international  settlements.  With  a  view  to  foreign  residence  and 
commerce  the  Chinese  Government  will  as  soon  as  possible  throw 
open  suitable  cities  and  marts  in  the  Province  of  Siiantung.  The 
regulations  governing  the  opening  as  marts  of  the  above-mentioned 
places  will  be  formulated  by  the  Chinese  Government  in  consultation 
with  the  interested  countries. 

3.  The  Shantung  Railway  and  the  mines  thereto  appertaining  are 
to  be  considered  as  an  organization  under  joint  Chinese  and  Japanese 
operation. 

*  For  the   foregoing  correspondence,  see   China    Year  Book,    1921-1922, 
pp.  716-719. 


294  CHINA  AT  THE  CONFERENCE 

4.  All  preferences  and  options  relating  to  the  employment  of 
persons  and  the  supply  of  capital  and  materials  that  are  based  on 
the  Kiaochow  Convention  are  to  be  renounced. 

5.  The  Right  to  the  extension  of  the  Shantung  Railway  and  any 
option  with  regard  to  the  Chefoo-Weihsien  and  other  railways  are 
to  be  assigned  to  the  common  undertakings  of  the  new  Consortium. 

6.  The  Customs  Administration  at  Tsingtao  is  to  be  made  even 
more  truly  and  clearly  than  the  system  under  the  German  regime 
an  integral  part  of  the  Chinese  Customs  Administration. 

7.  The  Administrative  government  properties  within  the  Leased 
Territory  is  in  principle  to  be  ceded  to  China,  but  further  agreements 
will  be  made  relating  to  the  administration  and  maintenance  of 
public  constructions. 

8.  For  the  conclusion  of  further  agreements  relative  to  the  details 
involved  in  the  execution  of  the  above-mentioned  arrangements  and 
to  other  matters  the  Chinese  and  Japanese  Governments  shall  as 
soon  as  possible  appoint  delegates. 

9.  Although  further  agreements  are  to  be  concluded  between 
China  and  Japan  relative  to  the  organization  of  the  Special  Police 
Force  for  the  Shantung  Railway,  upon  the  receipt  of  the  notification 
from  the  Chinese  Government  of  the  organization  of  the  Police  Force 
the  Japanese  Government  shall,  according  to  its  repeated  declara- 
tions, immediately  announce  the  withdrawal  of  its  troops  and  shall 
withdraw  them  upon  the  handing  over  of  the  functions  of  policing 
the  railway  to  the  Police  Force. 

China's  Answer.  The  answer  of  the  Chinese  Gov- 
ernment, dated  October  5,  declared : 

The  reason  why  China  has  not  until  now  been  able  to  commence 
negotiations  with  Japan  is  because  of  the  fact  that  the  basis  upon 
which  Japan  claims  to  negotiate  are  all  of  a  nature  either  highly 
objectionable  to  the  Chinese  Government  and  the  Chinese  people, 
or  such  to  which  they  have  never  given  their  recognition.  .  .  . 
After  careful  consideration  the  Chinese  Government  feels  that  much 
in  Japan's  new  proposals  is  still  incompatible  with  the  repeated 
declarations  of  the  Chinese  Government,  with  the  hopes  and  expecta- 
tions of  the  entire  Chinese  people,  and  with,  the  principles  laid 


SHANTUNG  295 

down  in  treaties  between  China  and  the  foreign  Powers.  If  these 
proposals  are  to  be  considered  the  final  concession  on  the  part  of 
Japan,  they  surely  fall  short  to  prove  the  sincerity  of  Japan's  desire 
to  settle  the  question. 

The  Chinese  communication  then  went  on  to 
examine,  seriatim,  the  Japanese  proposals,  indicating 
the  respects  in  which  they  were  deemed  unsatisfac- 
tory. The  lease  of  Kiaochow,  it  was  declared,  had 
expired  immediately  upon  China's  declaration  of  war 
against  Germany  and,  therefore,  Japan  had  over  that 
area  nothing  more  than  bare  military  posession — no 
leasehold  right  whatever.  Agricultural  pursuits,  it 
was  said,  concern  a  fundamental  means  of  existence 
of  the  people  of  a  country  and,  according  to  the  usual 
practice  of  all  countries,  foreigners  are  not  permitted, 
without  express  authority,  to  engage  in  them.  The 
opening  of  additional  Treaty  Ports  in  Shantung  was 
one  to  be  determined  wholly  by  China's  judgment. 
The  joint  operation  of  the  Shantung  Railway,  the 
Chinese  Government  declared  '*  is  objected  to  by  the 
entire  Chinese  people. ' '  The  Custom  House  at  Tsing- 
tao  should  be  under  the  complete  control  and  manage- 
ment of  the  Chinese  Government  and  should  have  a 
status  no  different  from  that  of  any  other  Custom 
House  in  the  Chinese  Maritime  Customs  Adminis- 
tration. All  public  properties  in  the  former  leased 
area  should  be  handed  over  to  China  without  con- 
ditions necessitating  special  arrangements.  The 
Japanese  troops  in  Shantung  should  be  immediately 
withdrawn  and  without  regard  to  the  restoration  of 
the  Kiaochow  territory.  The  communication  closed 
with  the  statement  that  "  in  view  of  the  marked  dif- 


296  CHINA  AT  THE  CONFERENCE 

ference  of  opinion  between  the  two  countries,  and 
apprehending  that  the  case  may  long  remain  unset- 
tled, China  reserves  to  herself  the  freedom  of  seeking 
a  solution  of  the  question  whenever  a  suitable  occasion 
presents  itself." 

On  October  18,  1921,  the  Japanese  Government 
again  submitted  a  long  communication  to  the  Chinese 
Government  in  which  it  traversed  the  Chinese  state- 
ment that  the  Kiaochow  lease  had  been  annulled  by 
the  Chinese  declaration  of  war  against  Germany,  and, 
in  support  of  this  contention,  referred  to  the  declara- 
tion of  the  German  representative  in  May,  1921,  to 
the  Chinese  Government  that,  by  reason  of  the  Ver- 
sailles Treaty,  Germany  was  unable  to  restore 
Kiaochow  to  China, — a  declaration  of  fact,  which, 
the  Japanese  note  asserted,  China  had  accepted.  The 
note  also  called  attention  to  the  fact  that  the  value 
of  the  railway  and  mines  in  Shantung  held  by  Japan 
had  been  appraised  by  the  Reparations  Commission 
under  the  Versailles  Treaty,  and  the  amounts  de- 
ducted from  the  sums  due  to  Japan  from  Germany 
by  way  of  reparations, — that,  in  this  way,  Japan  had 
paid  for  these  properties. 

To  this  Japanese  note  the  Chinese  Government 
replied  by  repeating  its  regret  that  the  Japanese 
Government  should  propose  a  basis  of  settlement  so 
far  from  the  hopes  and  expectations  of  the  Chinese 
people  that  it  could  not  be  even  considered,  and  by 
denying  that  it  had  given  to  the  Japanese  Govern- 
ment an  assurance  that  it  would  open  negotiations  if 
that  Government  would  present  concrete  proposals 
for  consideration. 


SHANTUNG  297 

As  for  the  declaration  of  the  German  representa- 
tive to  China  in  the  preceding  May,  the  Chinese 
Government  pointed  out  that  that  statement  was  noth- 
ing more  than  one  of  regret  upon  the  part  of  the 
German  Government  that,  by  force  majeure,  it  was 
unable  to  restore  Kiaochow  to  China,  and  that  China 
had  merely  acknowledged  this  explanation  as  such 
and  nothing  more,  and  thus  had  given  no  recognition 
whatever  of  the  validity  of  the  Versailles  Treaty." 

As  to  the  Shantung  Railway,  somewhat  misunder- 
standing the  proposition  that  Japan  had  made  with 
regard  to  its  owTiership  and  operation,  and  conceiving 
that  Japan  had  expressed  its  willingness  to  vest  half 
of  its  o^^Tlership  in  China,  the  Chinese  Govermnent 
declared  its  willingness  to  pay  Japan  for  its  half  and 
thus  to  become  the  sole  owner  of  the  road. 

Reasons  why  the  Other  Powers  were  Unwilling  to 
have  the  Shantung  Question  Brought  before  the  Con- 
ference. The  correspondence  which  has  been  quoted 
or  summarized  serves  to  show  the  status  of  the  Shan- 
tung Question  at  the  time  of  the  convening  of  the 
Washington  Conference.    The  reasons  why  it  would 

*  On  May  5,  1921,  an  "  Accord  "  was  signed  between  China  and  Germany, 
as  a  basis  for  a  definitive  treaty,  according  to  which  amity  and  commerce 
between  the  two  countries  were  restored,  and  the  appointment  of  diplo- 
matic and  consular  officials  provided  for.  In  connection  with  this  agree- 
ment the  German  representative  declared  that  Germany  formally  consented 
to  the  abrogation,  so  far  as  its  nationals  were  concerned,  of  extraterritorial 
jurisdiction  in  China.  With  regard  to  Shantung  the  following  statement 
was  made : 

"  Constate  que  I'Allemagne  par  les  evencments  de  la  guerre  et  par  le 
traits  de  Versailles  a  et^  obligee  de  renouncer  k  tout  sea  droits,  titres  et 
privileges  qu'elle  a  acquis,  en  vertu  du  traite  passd  par  elle  avec  la  Chine 
le  6  Mars  1898  et  de  tous  autres  actes  concrmnnt  la  province  du  Chantoung, 
et  86  trouve  ainsi  priv6e  de  la  possibilite  de  Ics  restitutuer  &  la  China." 


298  CHINA  AT  THE  CONFERENCE 

not  be  advantageous  to  China  to  insist  that  the  entire 
matter  should  be  brought  before  that  Conference  to 
the  exclusion  of  any  other  mode  of  adjustment  have 
been  given.  To  these  reasons  it  may  be  added  that 
the  other  Powers  participating  in  the  Conference 
v^ere,  for  reasons  of  their  own,  anxious  that  the  con- 
troversy should  not  be  brought  before  them  in  such 
a  manner  as  to  compel  their  action  upon  it.  That 
Japan  should  not  look  forward  with  approval  to  a 
general  discussion  of  her  acts  in  and  concerning 
Shantung  was  but  natural,  and  it  is  known  that  she 
would  have  asserted  that  the  matter  was  one  which 
the  Conference  could  not  properly  consider — that  it 
was  one  to  be  decided  wholly  between  herself  and 
China.  Thus  it  will  be  remembered  that  when  the 
Treaties  and  Agreements  of  May  25,  1915,  including 
of  course  the  Shantung  Treaty,  were  first  brought 
before  the  Conference  on  January  5, 1922,  Mr.  Hani- 
hara,  speaking  for  the  Japanese  Delegation,  said  that 
' '  the  question  was  one  to  be  taken  up  between  Japan 
and  China,  if  it  were  to  be  taken  up  at  all,  and  not 
at  this  Conference.  He  wished  to  make  this  point 
clear."  It  is  also  practically  certain  that  the  other 
Powers  which  signed  the  Treaty  of  Versailles,  and 
especially  Great  Britain,  had  unwilUngly  agreed  to 
the  Shantung  provisions,  but  had  been  compelled  to 
do  so  because  of  agreements  which  they  had  entered 
into  with  Japan  during  the  progress  of  the  war. 
However,  should  the  matter  be  again  brought  before 
them  they  would  feel  themselves  obliged  to  honor 
their  signatures  to  the  Versailles  Treaty.  The  United 
States  was  exceedingly  anxious  that  justice  should  be 


SHANTUNG  299 

done  China  in  the  matter,  and  that,  in  the  interests  of 
peace  in  the  Far  East,  this  disturbing  controversy 
between  China  and  Japan  should  be  removed.  Its 
hands  were  free,  so  far  as  the  Versailles  Treaty  was 
concerned,  but  it  clearly  perceived,  as  has  been  earlier 
pointed  out,  that  no  repudiation  of  the  Shantuns: 
clauses  of  that  treaty  by  the  Powers  signatory  to  it 
could  be  expected.  Therefore,  it  also  was  anxious 
that  the  matter  should  not  be  brought  before  the 
Conference.  In  addition  to  the  futility  of  such  a 
course  which  it  perceived,  it  feared  lest  the  success 
of  the  entire  w^ork  of  the  Conference  should  be 
endangered  by  the  discussions  which  would  probably 
ensue.  The  United  States  would  feel  compelled  to 
side  with  China,  but  this  would  result  in  no  benefit 
to  China  since  the  other  Powers  would  be  obliged  to 
support  the  status  quo  or,  at  any  rate,  the  provisions 
of  the  Versailles  Treaty.  Thus  the  Conference  would 
find  itself  openly  and  irreconcilably  divided  upon  this 
important  matter. 

Conversations  Agreed  Upon.  The  foregoing  were 
the  considerations  which  led  Secretary  Hughes  and 
Sir  Arthur  Balfour  to  extend  to  the  Chinese  and 
Japanese  Delegations  their  **  good  offices  **  with  a 
view  to  persuading  them  to  enter  into  friendly  Con- 
versations outside  the  Conference,  in  order  that  they 
might,  if  possible,  come  to  some  agreement  regarding 
Shantung,  or,  at  any  rate,  to  determine  the  specific 
points  upon  which  they  could  reach  an  agreement, 
and  thus  reduce  the  entire  controversy  to  the  simplest 
and  most  definite  form  possible  in  case  it  should  be 


300  CHINA  AT  THE  CONFERENCE 

finally  found  necessary  to  bring  it  before  the  Con- 
ference. 

This  suggestion,  emanating  from  the  chiefs  of  the 
American  and  British  Delegations,  the  Chinese  and 
Japanese  Delegations  accepted,  and  Conversations 
entered  upon  on  December  1,  which,  extending  to 
thirty-six  in  number,  were  terminated  on  January  31, 
and  resulted  in  a  full  agreement  upon  all  points, 
which  agreement  was  embodied  in  a  Treaty  signed 
February  4,  1922. 

Persons  Participating  in  the  Conversations.      The 

Chinese  Delegation  was  represented  by  its  three 
Chief  Delegates,  Dr.  Sze,  Dr.  Koo,  and  Dr.  Wang 
and  their  secretaries. 

The  Japanese  Delegation  was  represented  at  the 
first  meeting  by  Baron  Kato,  Mr.  Hanihara  and  Mr. 
Debuchi,  and  their  secretaries.  Beginning  with  the 
second  meeting  Baron  Kato  was  replaced  by  Prince 
Tokogowa  who  was  succeeded  by  Baron  Shidehara. 

His  Excellency  Mr.  Hughes,  representing  America, 
and  Mr.  Balfour,  representing  Great  Britain,  were 
present  at  the  first  meeting.  Thereafter,  America 
was  represented  by  Mr.  J.  V.  A.  MacMurray  and 
Mr.  Edward  Bell;  and  Great  Britain  by  Sir  John 
Jordan  (later  replaced  by  Mr.  A.  Gwatkin)  and  Mr. 
M.  W.  Lampson. 

Procedure.  At  the  first  meeting  it  was  decided  that 
the  meetings  should  be  informal ;  without  a  president 
or  presiding  officer ;  that  as  much  publicity  as  possible 
should  be  given  to  the  proceedings ;  that  Dr.  Koo  and 
Mr.  Hanihara  should  supervise  the  drafting  of  the 


SHANTUNG  301 

press  communiques ;  that  minutes  should  be  kept  by 
the  secretaries  of  the  Chinese  and  Japanese  Delega- 
tions with  the  assistance,  when  necessary,  of  the 
American  and  British  representatives;  that  substi- 
tutes might  be  sent  in  place  of  plenipotentiaries ;  that 
the  whole  communications  between  Japan  and  China 
in  relation  to  the  Shantung  Question  might  be  used 
as  a  basis  for  discussions;  and  that  at  the  close  of 
each  meeting  the  date  should  be  agreed  upon  for  the 
next  meeting. 

In  the  account  of  the  discussions  which  follows  the 
topical  method  of  presentation  will  be  adopted — a 
method  which  will  most  clearly  exhibit  the  complexity 
of  the  controversy,  and  the  significance  of  the  specific 
agreements  reached. 

Restoration  of  Kiaochow.  It  was  agreed  without 
discussion  that  Japan  should  restore  to  China  the 
former  German  leased  area  of  Kiaochow.  The 
details  of  the  transfer,  it  was  agreed,  should  be  ar- 
ranged for  and  carried  out  by  a  Joint  Commission 
composed  of  six  members,  three  of  whom  were  to  be 
appointed  by  the  Chinese  Government  and  three  by 
the  Japanese  Government.  This  Commission,  it  was 
declared,  should  meet  immediately  upon  the  coming 
into  force  of  the  treaty,  and  the  transfer  of  the  ad- 
ministration of  the  leased  area  and  of  public  proper- 
ties to  be  completed  as  soon  as  possible,  and,  in  any 
case,  not  later  than  six  months  from  the  coming  into 
force  of  the  Shantung  Treaty. 

It  was  specifically  agreed  by  the  Japanese  Dele- 
gation that,  at  the  time  of  the  transfer  of  the  leased 
area,  Japan  would  hand  over  to  China  such  archives, 


302  CHINA  AT  THE  CONFERENCE 

registers,  plans,  title  deeds,  and  other  documents,  as 
she,  Japan,  might  possess,  or  certified  copies  thereof, 
and  which  might  be  necessary  for  such  transfer  or 
be  later  useful  to  China  in  the  administration  of  the 
area  and  the  fifty  kilometre  zone  around  Kiaochow 
Bay. 

It  was  also  agreed  that  Japan  would  not  seek  the 
establishment  in  the  former  leased  area  of  an  exclu- 
sive Japanese  *'  settlement  "  or  an  international 
settlement. 

The  Chinese  Delegation,  upon  its  part,  agreed  that 
the  Government  of  China,  pending  the  enactment 
and  general  application  of  laws  regulating  the  system 
of  local  self-government  in  China,  would  ascertain  the 
views  of  the  foreign  residents  in  Kiaochow  in  muni- 
cipal matters  directly  affecting  their  welfare  and 
interests.  Also  that  the  entire  former  leased  area 
should  be  opened  to  foreign  trade,  and  that,  within  it, 
foreign  nationals  should  be  permitted  freely  to  reside 
and  carry  on  commerce,  industry  and  other  lawful 
pursuits. 

Customs.  In  its  note  of  September  7,  1921,  to  the 
Chinese  Government,  the  Japanese  Government  had 
declared  that  it  desired  that  the  Customs  Adminis- 
tration at  Tsingtao  should  be  **  even  more  truly  and 
clearly  than  the  system  under  the  German  regime  an 
integral  part  of  the  Chinese  Customs  Administra- 
tion." However,  Mr.  Hanihara,  in  behalf  of  his 
Delegation,  asked  that  the  Japanese  language  should 
be  made  one  of  the  official  languages  of  Customs 
Administration,  and  that  there  should  be  appointed 
upon  the  customs  staff  at  Tsingtao  a  sufficient  number 


SHANTUNG  303 

of  persons  versed  in  that  language.    To  these  pro- 
posals Dr.  Sze  replied: 

We  like  our  customs  service  to  be  the  same  everywhere;  it  is  not 
convenient  to  have  different  languages  in  different  ports.  The  In- 
spector General  [of  Maritime  Customs]  would  be  glad  to  give  facili- 
ties to  the  traders  of  Japan,  but  we  hardly  think  it  possible  to  use 
a  foreign  language. 

It  was  finally  agreed  that  the  Chinese  Delegation 
should  recommend  to  its  Government  that  Japanese 
traders  should  be  permitted  to  communicate  in  the 
Japanese  language  with  the  customs  administration 
at  Tsingtao,  and  that  the  Inspector-General  in  the 
selection  of  a  suitable  staff  at  Tsingtao  should  give 
consideration,  within  the  limits  of  its  established  ser- 
vice regulations,  to  the  diverse  needs  of  the  trade  at 
Tsingtao.  It  was  agreed  that,  with  this  understand- 
ing, the  provisional  Sino-Japanese  agreement  of 
August  6, 1915,  with  reference  to  the  customs  adminis- 
tration was  to  be  deemed  abrogated. 

Public  Properties.  The  return  to  China  of  the 
various  public  properties  and  public  works  or  ser- 
vices in  Tsingtao,  their  valuation,  and  the  operation 
of  them  after  their  return,  was  one  of  the  most  diffi- 
cult matters  which  the  Delegations  had  to  discuss. 

The  Japanese  Delegation  agreed,  \Wthout  discus- 
sion, that  all  public  propei-ties  which  Japan  had 
acquired  without  cost  to  herself  should  be  returned 
to  China  without  compensation  except  for  such  im- 
provements as  she  might  have  made  upon  them;  and 
that  this  principle  should  applj^  not  only  to  properties 
originally  belonging  to  China  and  transferred  to 
Germanv  at  the  time  of  the  treatv  of  lease,  but  also 


304  CHINA  AT  THE  CONFERENCE 

to  properties  acquired  and  buildings  or  works  con- 
structed by  Germany  during  the  German  regime. 
However,  as  to  property  acquired,  or  buildings  or 
works  constructed  by  Japan  during  Japanese  occu- 
pation, compensation  from  China  would  be  asked  for. 
The  Japanese  Delegation  further  said  that  a  few 
buildings  and  premises  for  the  use  of  the  Japanese 
consulate  and  for  Japanese  public  schools,  a  ceme- 
tery, shrines,  and  other  properties  of  a  similar  nature 
should  be  handed  over  to  the  Japanese  community 
in  Tsingtao  for  maintenance  and  preservation. 

As  to  such  public  works  as  roads,  water-works, 
parks,  drainage  and  sanitary  equipment,  etc.,  the 
Japanese  Delegation  asked  that,  after  being  handed 
over  to  China,  arrangement  should  be  made  for  their 
satisfactory  maintenance  and  management  in  the 
interest  and  welfare  of  the  general  public ;  and  that 
such  enterprises  as  the  electric  light,  telephone,  stock 
yard,  etc.,  hitherto  under  Government  management, 
should  be  handed  over  to  Chinese  corporations,  to  be 
organized  for  the  purpose  and  with  foreign  stock- 
holders. 

The  Chinese  Delegation  refused  to  accept  the  prin- 
ciple of  compensation  to  be  made  by  China  for  any 
properties  properly  belonging  to  the  category  of  pub- 
lic properties,  but  said  that  they  were  willing  that 
suitable  properties,  as  above  mentioned,  might  be 
reserved  for  use  by  the  Japanese  consulate  and  by  the 
Japanese  community  at  Tsingtao.  As  to  properties 
acquired  or  buildings  or  works  constructed  by  Japan- 
ese during  the  Japanese  occupation,  China  would 
make  a  reasonable  payment,  due  consideration  being 


SHANTUNG  305 

given  to  depreciation  and  to  the  fact  that  China  had 
contributed  20  per  cent  of  the  Tsingtao  customs 
revenues  towards  the  expense  of  the  leased  area,  and 
that  the  Japanese  had  made  considerable  profit  from 
the  operation  of  certain  of  the  public  works. 

As  to  the  maintenance  and  operation  of  public  ser- 
vice after  their  return  to  China,  the  Chinese  Dele- 
gation said  that  foreign  interests  in  Tsingtao  would 
be  given  a  fair  representation,  but  that  no  undertak- 
ing could  be  given  as  to  the  form  of  government  that 
Tsingtao  was  to  have. 

After  extended  discussion  it  was  agreed  by  the  two 
Delegations  that  the  Government  of  Japan  should 
transfer  to  the  Chinese  Republic  all  public  properties, 
including  lands,  buildings,  works  or  establishments, 
public  enterprises  such  as  the  telephone  system,  elec- 
tric light,  stock  yard  and  laundry  in  the  former  leased 
area  whether  formerly  possessed  by  the  German 
authorities  or  purchased  or  constructed  by  the  Japan- 
ese authorities  during  the  period  of  Japanese  admin- 
istration; that,  for  this  transfer,  no  compensation 
should  be  asked  of  the  Chinese  Government,  but  that 
for  properties  purchased  or  constructed  by  the 
Japanese  authorities,  and  for  improvements  or  addi- 
tions to  those  foi-merly  possessed  by  the  German 
authorities,  a  fair  and  equitable  proportion  of  the 
expense  actually  incurred  by  Japan  (due  regard 
being  had  to  the  princijjle  of  dej^reciation  and  con- 
tinuing value)  should  be  refunded  by  China.  Also 
that  such  public  properties  as  might  be  needed  for 
the  Japanese  consulate  to  be  established  at  Tsingtao 
should  be  retained  by  Japan;  and  those  properties 
21 


306  CHINA  AT  THE  CONFERENCE 

especially  required  for  the  benefit  of  the  Japanese 
community,  including  public  schools,  shrines  and 
cemeteries,  should  be  left  in  the  hands  of  that  com- 
munity. 

Specifically  it  was  agreed  that,  in  the  management 
and  maintenance  of  the  public  works  transferred,  the 
foreign  community  in  the  former  leased  area  should 
have  fair  representation ;  that,  in  the  management  of 
the  telephone  system  due  consideration  would  be  given 
by  the  Chinese  Government  to  requests  of  the  foreign 
community  for  such  extensions  and  improvements  as 
might  be  reasonably  required  in  the  interests  of  the 
public;  and  that  the  Government  of  China,  upon 
receiving  the  electric  light,  stock  yard  and  laundry 
enterprises  would  re-transfer  them  to  the  Chinese 
municipal  authorities  of  Tsingtao,  which,  in  turn, 
should  cause  commercial  companies  to  be  formed  for 
their  operation  and  management  subject  to  municipal 
regulation  and  supervision. 

Vested  Rights.  As  to  these,  after  considerable 
discussion,  it  was  agreed  that ''  vested  rights  lawfully 
and  equitably  acquired  by  foreign  nationals  "  in  the 
former  leased  area,  whether  under  the  German 
regime  or  during  the  period  of  the  Japanese  adminis- 
tration, would  be  respected  by  the  Chinese  Govern- 
ment ;  and  that  all  questions  relating  to  the  status  or 
validity  of  such  rights  claimed  by  Japanese  subjects 
or  Japanese  companies  should  be  adjusted  by  the 
Joint  Commission  later  to  be  referred  to. 

Salt.  During  the  Japanese  occupation,  Japanese 
nationals  became  largely  interested  in  the  production 


SHANTUNG  307 

of  salt  in  Shantung ;  with  the  result  that  the  annual 
output  of  salt,  which,  under  the  German  regime,  had 
been  84,000  tons  had  increased  to  270,000  tons;  and 
that  very  considerable  amounts  had  been  exported  to 
Japan,  which  country  was  in  great  need  of  that  com- 
modity. The  contention  of  the  Japanese  Delegation 
was  that  the  interests  of  their  nationals  in  this  indus- 
try should  be  recognized  and  protected.  This,  the 
Chinese  Delegation  said,  would  be  effected  if  the 
present  Japanese  interests  were  protected,  but  the 
industry  prevented  from  so  developing  as  to  compete 
with  the  Chinese  Government  monopoly  of  the  pro- 
duction and  sale  of  salt,  and  at  the  same  time,  an 
arrangement  made  for  the  export  to  Japan  of  a  fixed 
amount  of  salt.  Reference  was  made  by  the  Chinese 
Delegation  to  the  fact  that,  during  Japanese  occupa- 
tion, considerable  amounts  of  salt  had  been  smuggled 
to  other  parts  of  China  by  the  Japanese.  Mr.  Hani- 
hara  said  that  he  did  not  know  that  this  was  the  case, 
but  that  the  Japanese  would  be  willing  to  cooperate 
with  the  Chinese  Government  to  prevent  smuggling 
in  the  future. 

It  was  finally  agreed  that  the  interests  of  Japanese 
subjects  or  companies  actually  engaged  in  the  salt 
industry  along  the  coast  of  Kiaochow  Bay  should  be 
purchased  by  the  Chinese  Government  at  a  fair  valu- 
ation and  that  the  exportation  to  Japan  of  a  quantity 
of  salt  produced  by  such  industry  along  this  coast 
should  be  permitted  on  reasonable  terms. 

Mines.  It  was  agreed  that  the  mines  of  Tsechwan, 
Fangtze  and  Chinlingchen,  rights  for  which  had  been 
formerly  granted  to  Germany,  should  be  handed  over 


308  CHINA  AT  THE  CONFERENCE 

to  a  company  to  be  formed  under  a  special  charter  to 
be  granted  by  the  Chinese  Government,  and  according 
to  which  the  amomit  of  Japanese  capital  invested 
therein  should  not  exceed  that  of  the  Chinese  capital. 

Withdrawal  of  Japanese  Troops.  As  has  been 
earlier  seen,  Japan  had  several  times  declared  her 
readiness  to  withdraw  her  troops  along  the  Shantung 
Railways  as  soon  as  a  Chinese  police  or  other  military 
force  should  be  sent  to  replace  them.  This  under- 
taking was  reaffirmed  in  the  Conversations,  with  the 
specific  understanding  that  this  replacement  should 
be  effected  in  sections,  and  the  entire  withdrawal 
to  be  completed  within  three  months,  if  possible,  and, 
in  any  case,  not  more  than  six  months  from  the  date 
of  the  signing  of  the  Shantung  Treaty.  The  Japan- 
ese garrison  at  Tsingtao,  it  was  agreed,  should  be 
withdrawn  simultaneously,  if  possible,  with  the  trans- 
fer to  China  of  the  administration  of  Kiaochow,  and, 
in  any  case,  within  thirty  days  thereafter. 

Wireless  Stations.  It  was  agreed  that  the  Govern- 
ment of  Japan  should  transfer  to  the  Chinese  Govern- 
ment for  a  fair  compensation  the  Japanese  wireless 
stations  at  Tsingtao  and  Tsinanfu  upon  the  with- 
drawal of  the  Japanese  troops  at  those  places. 

Submarine  Cables.  It  was  agreed  that  all  the 
rights,  titles  and  privileges  concerning  the  former 
German  submarine  cables  between  Tsingtao  and 
Chefoo  and  between  Tsingtao  and  Shanghai,  should 
become  vested  in  China  with  the  exception  of  those 
portions  of  these  cables  which  had  been  utilized  by 


SHANTUNG  309 

the  Government  of  Japan  for  laying  a  cable  between 
Tsingtao  and  Sesabo,  Japan.  All  questions  relating 
to  the  landing  and  operation  at  Tsingtao  of  this  last 
named  cable,  it  was  agreed,  should  be  determined  by 
the  Joint  Commission,  later  to  be  described,  subject 
to  the  terms  of  existing  contracts  to  which  China  is 
a  party. 

Renunciation  by  Japan  of  Preferential  Rights  in 
Shantung.  It  was  agreed  that  the  Government  of 
Japan  would  renoimce  all  preferential  rights  with 
respect  to  foreign  assistance  in  persons,  capital  and 
material,  which  had  been  granted  by  China  to  Ger- 
many in  the  Treaty  of  lease  of  March  6,  1898.  Also 
that,  provided  it  were  constructed  with  Chinese 
capital,  Japan  would  not  claim  that  the  option  for 
financing  the  proposed  Chefoo-Weihsien  Railway 
should  be  open  to  the  common  activity  of  the  Inter- 
national Financial  Consortium. 

The  Shantung  Railway.  Overshadowing  in  impor- 
tance perhaps  even  the  return  to  China  of  the 
administration  of  the  Kiaochow  area,  was  the  ques- 
tion as  to  the  conditions  imder  which  the  Shantung 
Railway  running  from  Tsingtao  to  Tsinanfu  was  to 
be  restored  to  China.  More  than  one-half  of  the  Con- 
versations were  devoted  to  the  consideration  of  this 
one  subject,  and  it  was  upon  this  matter  that  the  two 
Delegations  found  themselves  deadlocked  for  a  period 
of  approximately  a  month. 

The  controversy  centered  mainly  around  the  two 
points  as  to  the  form  in  which  China  should  make 
payment  to  Japan  for  the  road,  and  the  amount  of 


310  CHINA  AT  THE  CONFERENCE 

interest  or  control  Japan  should  retain  in  the  manage- 
ment and  operation  of  the  road  after  its  surrender 
to  the  Chinese  Government.  However,  there  was  also 
considerable  difficulty  in  arriving  at  an  agreement  as 
to  the  manner  in  which  valuation  of  the  road  and  its 
appurtenant  properties  should  be  determined. 

The  Valuation  of  the  Railway  and  Appurtenant 
Properties.  There  seemed  to  be  some  confusion  at 
first  as  to  the  manner  in  which  the  Japanese  Govern- 
ment had  eliminated  the  German  financial  interests  in 
the  Railroad.  This  road,  it  will  be  remembered,  had 
been  owned  and  operated  by  a  German  chartered 
corporation  in  which  the  Chinese  had  a  few  (360) 
shares  of  1000  marks  each.  The  earlier  offer  of  the 
Chinese  Government  to  pay  Japan  one-half  of  the 
value  of  the  railway  properties  upon  their  control  and 
ownership  being  vested  in  the  Chinese  Government, 
had  been  based  upon  the  assiunption  that  those 
properties  had  been  public  property  of  Germany,  and 
therefore  subject  to  military  seizure  and  condemna- 
tion, although  it  was  of  course  not  conceded  that  the 
Japanese  had  ever  had  a  right  to  take  possession  or 
to  assert  ownership  of  any  part  of  the  line  or  proper- 
ties outside  of  the  leased  area.  However,  as  soon  as 
it  appeared  that  the  railway  properties  had  been 
regarded  by  the  Japanese  as  private  German  prop- 
erty, and  that  the  Japanese  Government  had  agreed 
that  their  value — assessed  by  the  Reparations  Com- 
mission as  53,406,141  Gold  Marks — should  be  de- 
ducted from  the  total  of  the  pecuniary  reparations 
due  from  Germany  to  Japan,  the  Chinese  Delegation 


SHANTUNG  311 

expressed  its  willingness  to  pay  to  Japan  the  entire 
value  of  the  railway  properties,  less  the  surplus  profit 
received  by  the  Japanese  from  their  operation  of  the 
road,  and  less  also  the  amount  represented  by  the 
Chinese-held  shares  in  the  German  railway  cor- 
poration. 

Improvements  and  Additions.  The  question  of 
improvements  of  and  additions  to  the  properties  by 
the  Japanese  was  then  raised.  The  Chinese  Delega- 
tion said  that  these  would  be  compensated  for  in  so 
far  as  they  were  permanent  in  character,  were  im- 
provements or  additions  as  distinguished  from  mere 
upkeep  or  replacement,  and  in  so  far  as  they  had 
not  been  paid  for  by  the  Japanese  out  of  the  revenues 
of  the  railway  itself. 

Baron  Shidehara  asserted  that  since  her  occupation 
of  the  railway  Japan  had  not  been  operating  it  as  an 
agent  of  China  and  that,  therefore,  Japan  should 
not  be  held  accountable  to  China  for  the  profits  accru- 
ing from  such  operation.  He  admitted,  however, 
that,  since  occupation,  the  Japanese  had  not  ac- 
counted for  any  of  the  profits  to  the  shareholders 
of  the  corporation  in  which  the  legal  title  to  the  rail- 
way had  been  vested. 

Mr.  Sze  asked  whether  it  was  correct  to  assume  that 
China  would  not  be  asked  to  pay  for  the  go-downs, 
warehouses,  as  well  as  dock  No.  3  which  were  con- 
nected with  the  Railway  but  were  public  properties. 
Baron  Shidehara  said  that  this  was  correct  except  as 
to  any  improvements  that  the  Japanese  might  have 
made  upon  them.  Mr.  Sze  asked  further  as  to 
barracks  for  Japanese  troops  as  well  as  \vireless  sta- 


312  CHINA  AT  THE  CONFERENCE 

tions  along  the  railway.  Baron  SMdehara  said  that 
these  could  be  handed  over  at  their  actual  value.  Mr. 
Sze  observed  that  they  would  have  only  a  *'  residu- 
ary "  value  to  the  Chinese  Government  and  should 
only  be  paid  for  upon  such  a  basis.  It  was  therefore 
agreed  that  the  principles  of  depreciation  and  con- 
tinuing value  should  receive  their  proper  application. 
As  to  the  mode  of  determining  the  actual  value  of 
the  road,  the  Chinese  Delegation  proposed  the  fol- 
lowing formula : 

China  to  pay  the  actual  value  of  the  Shantung  Eailway  proper- 
ties as  represented  by  the  Reparations  Commission  figure  plus  the 
actual  amount,  minus  the  depreciation,  that  was  expended  for  such 
permanent  improvements  on  or  additions  to  the  Railway  properties 
as  were  effected  by  Japan  during  the  period  of  her  administration 
of  the  railway. 

After  considerable  discussion  regarding  phrase- 
ology and  other  matters,  and  especially  as  to  whether 
the  term  **  Reparation  Commission  figure  "  should 
be  replaced  by  a  statement  of  the  exact  amoimt,  the 
following  formula  was  agreed  to  by  both  Delegations. 

(1)  Japan  to  transfer  to  China  the  Tsingtao-Tsinanfu  Railway 
and  its  branches  together  with  all  the  properties  appurtenant  thereto, 
including  wharves  and  warehouses  and  other  similar  properties, 
it  being  understood  that  the  question  of  the  mines  appurtenant  to 
the  Railway  shall  be  set  apart  for  separate  consideration.  The  said 
transfer  to  be  completed  as  soon  as  practicable  and  not  later  than 
nine  months  after  the  coming  into  force  of  the  agreement  of  the 
whole  Shantung  question. 

(2)  China  to  pay  to  Japan  the  actual  value  of  the  Tsingtao- 
Tsinanfu  Railway  properties,  consisting  of  the  sum  of  53,406,141 
Gold  Marks,  or  its  equivalent,  which  is  the  assessed  value  of  such 
railway  properties,  as  were  left  behind  by  the  Germans,  plus  the 
amount  which  Japan,  during  the  period  of  her  administration  of  the 


SHANTUNG  313 

Railway,  has  actually  expended  for  permanent  improvements  on 
and  additions  to  the  railway  properties,  less  a  suitable  allowance 
for  depreciation,  .  It  is  understood  that  no  charge  will  be  made  for 
the  transfer  to  China  of  wharves  and  warehouses  and  other  similar 
properties  mentioned  in  the  preceding  clause,  except  for  such  perma- 
nent improvements  on  and  additions  to  them  as  may  have  been 
effected  by  Japan,  less  a  suitable  amount  for  depreciation. 

Joint  Railway  Commission.  It  was  also  agreed  that 
the  Governments  of  China  and  Japan  should  each 
appoint  three  Commissioners  to  form  a  Joint  Rail- 
way Commission,  with  power  to  appraise  the  actual 
value  of  the  railway  properties  in  accordance  with 
the  principles  agreed  upon.  Furthermore,  the  under- 
standing, to  be  embodied  in  an  Exchange  of  Notes, 
was  arrived  at  that  should  this  Railway  Commission 
fail  to  reach  an  agreement  on  any  of  the  matters 
submitted  to  it,  the  points  at  issue  would  be  taken  up 
by  the  two  Governments  for  discussion  and  adjust- 
ment by  means  of  diplomacy. 

In  the  Conversations  the  Chinese  Delegation  urged 
that  these  differences  should  be  referred  for  discus- 
sion to  a  board  of  neutral  experts  to  be  chosen  bj^ 
mutual  agreement  upon  the  part  of  the  two  Govern- 
ments, but  this  was  declared  unacceptable  by  the 
Japanese  Delegation,  the  reason  alleged  being  that 
this  might  produce  the  misgiving  in  the  minds  of  the 
Japanese  people  that  neutrals  would  be  asked  to  settle 
differences  between  the  two  countries.  In  this  con- 
nection it  is  interesting  to  note  that,  throughout  the 
Conversations,  the  Japanese  showed  an  unwilling- 
ness to  accept  any  sort  of  procedure  that  savored  of 
international  arbitration.  With  regard,  however,  to 
the  Joint  Railway  Commission  they  did  agree  that. 


314  CHINA  AT  THE  CONFERENCE 

in  reaching  its  decisions  it  might,  if  necessary,  obtain 
recommendations  of  an  expert  or  experts  of  a  third 
Power  who  should  be  designated  by  the'mutual  agree- 
ment of  the  Chinese  and  Japanese  Governments. 

Mode  of  Payment  and  Conditions  to  be  Attached 
Thereto.  An  agreement  between  the  two  Delegations 
upon  the  foregoing  matters  having  been  reached,  the 
question  of  the  manner  in  which  China  should  pay 
for  the  Railway  and  its  properties  was  taken  up. 

The  Chinese  Delegation  asked  whether  it  was  the 
desire  of  the  Japanese  Government  that  China  should 
discharge  her  obligations  as  quickly  as  possible.  The 
reply  was  that  that  was  not  the  desire  of  Japan ;  but 
that  she  wished  to  retain  a  certain  amount  of  interest 
in  the  Railway  as  was  the  case  with  regard  to  other 
Chinese  Railways  operated  with  the  help  of  foreign 
loans.  Asked  if  Japan  would  object  to  a  cash  pay- 
ment, the  Japanese  Delegation  said  that  she  would. 

Mr.  Sze  stated  that  the  Chinese  bankers  had  offered 
the  Chinese  Government  a  loan  with  a  view  to  the 
purchase  of  the  Railway,  and,  if  that  offer  were 
accepted  there  would  be  no  need  for  a  foreign  loan. 
Baron  Shidehara,  however,  said  that  the  Japanese 
Government  would  consider  it  discriminatory  against 
itself  should  the  Chinese  Government  decline  the 
offer  of  Japan  to  make  a  loan.  Mr.  Sze  pointed  out 
that  it  was  difficult  to  see  how  the  Japanese  Govern- 
ment could  consider  itself  discriminated  against  in 
the  matter  of  railway  loans  when  its  financial  inter- 
ests already  held  so  many  Chinese  Railway  loans, — 
loans  aggregating  21,600,000  Yen  in  amount — an 
amount  exceeded  by  the  railway  loans  of  only  one 


SHANTUNG  315 

other  country.  Mr.  Sze  further  observed  that  it 
would  be  exceedingly  difficult  to  explain  to  the  Chi- 
nese people  why  the  offer  of  a  loan  from  their  own 
banks  was  not  accepted.  Baron  Shidehara  said  that 
the  purpose  in  retaining  a  Japanese  interest  in  the 
railway  was  not  only  to  safeguard  the  commercial 
interests  of  the  Japanese  people,  but  mostly  for  the 
purpose  of  escaping  criticism  that  might  otherwise 
be  created  in  Japan :  that  Japan  had  made  concession 
as  to  joint  operation,  but  wished  to  retain  at  least  an 
interest  in  the  railway. 

The  Chinese  Delegation  then  proposed  that  the 
payment  for  the  railway  should  be  made  in  six  install- 
ments at  intervals  of  six  months  each,  so  that  by  the 
end  of  three  years  total  payment  would  be  made. 
The  first  installment  would  be  made  in  cash,  and  the 
remaining  five  in  Treasury  Notes  secured  by  revenues 
of  the  railway.  Interest  at  a  reasonable  rate  would  be 
paid  upon  the  deferred  payments.  Furthermore,  the 
Chinese  Government  would  give  an  assurance  that 
in  the  operation  of  the  railway  there  would  be  no 
discrimination  against  traders  of  any  foreign  nation- 
ality. 

Japanese  Propose  Loan  by  Japanese  Capitalists  and 
Employment  of  Japanese  as  Chief  Engineer,  Chief 
Accountant,  and  Traffic  Manager.  Commenting  upon 
this  proposal,  the  Japanese  Delegation  found  it  un- 
satisfactory since  it  made  no  provision  for  continu- 
ing Japanese  interest  in  the  railway.  Now  for  the 
first  time  the  proposition  was  advanced  by  the  Japan- 
ese Delegation  that,  not  only  should  the  railway  be 
paid  for  by  China  by  a  loan  from  Japan,  but  that. 


316  CHINA  AT  THE  CONFERENCE 

during  the  currency  of  the  loan,  a  Japanese  Chief 
Engineer,  a  Japanese  Traffic  Manager  and  a  Japan- 
ese Chief  Accountant,  nominated  by  the  Japanese 
capitalists  should  be  employed  by  the  railway — these 
officials  to  be  subject  to  supervision  and  control  of 
the  higher  railway  authorities.  This  arrangement, 
it  was  declared,  would  not  interfere  in  any  way  with 
the  complete  o\Miership  and  operation  or  with  the 
plan  of  unification  of  the  Chinese  Railways,  which, 
it  was  understood,  China  was  aiming  at. 

Some  attempt  was  made  by  the  Japanese  to  support 
this  proposal  upon  the  groimd  that  the  efficiency  of 
the  operation  of  the  railway  would  thereby  be  ad- 
vanced. This  argument  was,  however,  only  men- 
tioned, and  no  serious  attempt  made  to  sustain  its 
validity.  Indeed,  as  was  later  brought  out,  the  sta- 
tistics of  the  railways  administered  by  the  Chinese 
Government  showed  better  results,  viewed  from  the 
standpoint  of  efficiency,  than  those  operated  by  the 
Japanese  Government.  The  point  more  strongly 
pressed  by  the  Japanese  Delegation  was  that  their 
proposal  for  the  employment  upon  the  Shantung 
Railway  of  a  Japanese  Chief  Engineer,  Traffic  Man- 
ager and  Chief  Accountant  was  in  conformity  with 
conditions  existing  upon  other  Chinese  railways  and 
provided  for  in  recent  railway  foreign  loans. 

As  to  this  argument  the  Chinese  Delegation  had  no 
difficulty  in  showing  that  the  practice  of  employing 
foreign  railway  experts  had  grown  up  in  China  not 
because  the  nations  had  found  any  dissatisfaction 
with  the  management  and  administration  of  the 
Chinese  railways,  but  because,  at  the  time  of  the  con- 


SHANTUNG  317 

striicting  of  the  railways  and  in  the  course  of  con- 
struction, the  Bankers  had  simply  seized  the 
opportunity  thus  given  them  to  obtain  for  their 
nationals  these  appointments.  The  Shantung  Rail- 
way stood  upon  a  wholly  different  footing.  It  was 
not  a  projected  railway  which  was  to  be  built,  but  was 
already  constructed  and  in  operation.  Furthermore, 
it  was  quite  possible  that  the  Shantung  Railway  after 
its  return  to  China's  control  would  be  operated  in 
conjunction  with  the  Tientsin-Pukow  line,  in  which 
case  the  Chief  Engineer,  Traffic  Manager  and  Ac- 
countant of  that  line  could  take  care  of  the  Shantung 
line.  In  other  words,  that  there  would  be  an  unneces- 
sary and  expensive  duplication  of  these  officials 
should  separate  ones  be  appointed  for  the  Shantung 
line. 

It  thus  developed  that  the  Japanese  Delegation 
was  anxious  that  the  loan  which  the  Chinese  Govern- 
ment should  obtain  from  Japanese  capitalists  should 
be  a  long  term  one  and  without  an  option  of  redemp- 
tion upon  the  part  of  China  until  a  considerable 
number  of  years  should  elapse.  Upon  reference  be- 
ing made  to  other  long  term  railway  loans,  the 
Chinese  Delegation  was  able  to  point  out  that  they 
had  been  made  for  the  purpose  of  constructing  the 
railways  concerned  and  not  for  financing  or  for  the 
purchase  of  roads  already  built. 

The  Japanese  Delegation  then  stated  that  it  was 
desirable  that  the  right  of  option  upon  the  part  of 
China  to  redeem  the  entire  loan  should  not  arise  imtil 
after  ten  years,  and  that  the  term  of  the  loan  should 
be  twenty  years,  and  that  China  should  engage  to 


318  CHINA  AT  THE  CONFERENCE 

employ  as  Chief  Engineer,  Traffic  Manager  and  Chief 
Accountant  of  the  road  three  Japanese  to  be  recom- 
mended by  the  Japanese  capitalists  making  the  loan, 
but  who  should  be  subject  to  the  supervision  of  the 
Chinese  Managing  Director.  Any  intention  upon  the 
part  of  the  Japanese  Government  to  control  the 
operation  of  the  road  was  disclaimed  but  nevertheless 
it  was  declared  that  Japan  placed  great  importance 
upon  these  appointments. 

Mr.  Sze  pointed  out  that  the  main  aim  of  the  Chi- 
nese Government  in  operating  the  road  would  be 
economy  and  efficiency :  that  foreign  experts  already 
employed  by  the  Government  could  be  utilized :  that 
the  Shantimg  line  was  only  280  miles  in  length  and 
would  in  all  probability  be  operated  in  connection 
with  the  Tientsin-Pukow  line,  and,  therefore,  could 
utilize,  without  extra  expense,  the  services  of  the 
Chief  Engineer,  Traffic  Manager  and  Accountant  of 
that  line.  Mr.  Sze  said  that  it  might  be  possible  to 
have  a  Japanese  District  Engineer  to  look  after  the 
maintenance  of  the  Shantimg  line  who  might  be 
selected  from  Japanese  Engineers  already  in  the  Chi- 
nese Railway  service,  but  that  there  was  no  necessity 
for  a  separate  Traffic  Manager  or  Chief  Accountant. 
He  pointed  out  that  upon  the  Peking-Hankow  Rail- 
way, which  was  as  long  as  the  Tientsin-Pukow  and 
Tsingtao-Tsinan  lines  put  together,  there  was  but 
one  Traffic  Manager.  In  fact,  said  Mr.  Sze,  there 
would  be  no  real  need  for  a  separate  District  Engi- 
neer for  the  Shantung  line  after  its  union  with  the 
Tientsin-Pukow  line,  and  he  had  made  the  suggestion 
that  such  a  post  might  be  created  and  filled  by  a 


SHANTUNG  319 

Japanese  only  to  show  the  willingness  of  the  Chinese 
to  meet,  as  far  as  possible,  the  wishes  of  the  Japanese 
Delegation. 

Baron  Shidehara  insisted  that  what  the  Japanese 
Delegation  wanted  was  a  Japanese  Traffic  Manager 
and  a  Chief  Accountant,  that  a  Japanese  Chief  Engi- 
neer would  not  be  insisted  upon,  and  that  unless  this 
arrangement  was  arrived  at,  it  would  be  difficult  for 
Japan  to  accept  payment  in  Treasury  Notes. 

The  Japanese  Delegation  asked  whether,  if  cash 
payment  were  agreed  upon,  the  Chinese  would  pay 
the  entire  sum  into  the  bank  of  a  neutral  Power  prior 
to  or  at  the  time  that  the  process  of  transferring  the 
railroad  should  begin,  which  bank  should  pay  the 
amount  to  Japan  as  soon  as  the  transfer  was  com- 
pleted. 

To  this  question  the  Chinese  Delegation  replied 
that  such  a  procedure  would  not  only  lead  to  a  dis- 
turbance of  the  money  market  but  necessarily  entail 
upon  China  a  very  considerable  loss  in  interest,  since, 
while  the  money  would  be  in  the  bank,  only  a  very  low 
rate  of  interest  upon  it  would  be  paid  as  compared 
with  that  which  the  Chinese  bankers  could  obtain 
from  its  use.  Also  there  w^as  the  difficulty  that  at 
present  the  Chinese  Delegation  did  not  know  how 
large  the  total  sum  would  be,  the  value  of  the  improve- 
ments and  additions  made  by  Japan  not  having  been 
determined.  It  was  therefore  suggested  by  the  Chi- 
nese Delegation  that  the  Joint  Commission  for  deter- 
mining values,  when  it  had  finished  its  work,  should 
decide  how  much  money  should  be  deposited  at  the 
outset  in  the  bank  of  the  tliird  Power,  and  that  the 


320  CHINA  AT  THE  CONFERENCE 

remaining  amounts  be  paid  in,  pari-passu  as  the 
transfer  of  the  Railway  and  its  appurtenant  proper- 
ties was  proceeded  with.  Concretely,  Mr.  Sze  sug- 
gested that  two-fifths  of  the  total  amount  should  be 
paid  in  at  the  end  of  the  first  three  months  after  the 
conclusion  of  the  Shantung  agreement;  that  at  the 
end  of  another  three  months  another  fifth  be  paid  in ; 
and  that  the  last  two-fifths  be  paid  in  at  the  end  of 
nine  months  after  the  signing  of  the  agreement. 

The  Japanese  Delegation  said  that  it  objected  to 
this  plan  upon  the  ground  that  it  did  not  furnish  a 
sufficient  guarantee  that,  after  the  transfer  of  the 
railway  properties  had  begun,  the  remaining  three- 
fifths  would  surely  be  paid  into  the  bank.  To  this 
the  Chinese  Delegation  pointed  out  that  no  business 
transactions  were  possible  without  some  degree  of 
confidence  in  one  another's  good  faith  and  ability, — 
that  merchants  sold  and  delivered  goods  upon  the 
understanding  that  they  would  be  paid  for  when 
received.  The  Japanese  Delegation,  however,  stood 
firmly  upon  the  condition  that,  if  cash  payment  were 
made  the  entire  amount  would  have  to  be  paid  into 
a  bank  of  a  third  Power  before  the  transfer  of  the 
road  should  begin. 

A  deadlock  having  been  reached  upon  the  foregoing 
points,  the  Conversations  were  discontinued  on 
December  20  until  the  Japanese  Delegation  could 
receive  further  instructions  from  its  Government, 
and  it  was  thus  not  until  January  6  that  the  next 
meeting  was  had.  After  discussions  running  through 
two  more  meetings,  the  two  Delegations  found  them- 
selves still  in  disagreement  and  it  was  at  this  time,  as 


SHANTUNG  321 

has  been  earlier  referred  to,  that  the  Chinese  Dele- 
gates suggested  that  the  "  good  oflfices  "  of  Secretary 
Hughes  and  Mr.  Balfour  be  resorted  to — a  suggestion 
which  the  Japanese  representatives  expressed  them- 
selves as  unwilling,  or  unable  xmder  their  instruc- 
tions, to  accept.  The  meetings  were  thereupon 
adjourned  sine  die,  pending  further  developments. 

The  Issue  Drawn.  In  the  Communique  issued  to 
the  press  the  situation  that  had  been  reached  was 
stated  in  the  following  terms : 

The  Japanese  Delegates  proposed  a  railway  loan  agreement  plan 
for  the  settlement  of  this  question  on  the  basis  of  the  terms  of  ordi- 
nary railway  loan  agreements  entered  into  by  China  with  various 
foreign  capitalists  during  recent  years,  namely,  on  the  following 
general  lines: 

1.  The  term  of  the  loan  shall  be  fixed  at  fifteen  years  while  China 
shall  retain  an  option  of  redeeming  the  whole  outstanding  liabilities 
upon  six  months'  notice  after  five  years  from  the  date  of  the 
agreement. 

2.  A  Japanese  Traffic  Manager  and  a  Chief  Accountant  shall  be 
engaged  in  the  service  of  the  Shantung  Railway. 

3.  The  details  of  the  financial  arrangement  shall  be  worked  out 
at  Peking  between  the  representatives  of  the  two  parties  to  the  loan. 

This  plan  was  not  found  acceptable  to  the  Chinese  Delegation. 
The  Chinese  Delegates,  on  their  part,  proposed  the  following  two 
alternative  plans: 

1.  China  to  make  a  cash  payment  for  the  railway  and  its  ap- 
purtenant properties  with  a  single  deposit  in  a  bank  of  a  third 
Power  at  a  specified  date  either  before  the  transfer  of  the  properties 
or  when  such  transfer  is  effected. 

2.  China  to  make  a  deferred  payment  either  in  Treasury  Notes 
or  Notes  of  the  Chinese  Bankers'  Union  secured  upon  the  revenues 
of  the  railway  properties,  extending  over  a  period  of  twelve  years 
with  an  option  on  the  part  of  China  at  any  time  after  three  years 

22 


322  CHINA  AT  THE  CONFERENCE 

upon  giving  six  months'  notice  to  pay  all  the  outstanding  liabilities. 
The  first  installment  to  be  paid  on  the  day  on  which  the  transfer 
of  the  railway  and  properties  is  completed. 

China  to  select  and  employ  in  the  service  of  the  Tsingtao-Tsinanf  u 
Railway  a  district  Engineer  of  Japanese  nationality. 

Neither  of  these  plans  was  found  acceptable  to  the  Japanese 
Delegation  in  their  present  form. 

Informal  Conversations  and  Interviews.  Meetings 
of  the  two  Delegations  were  resumed  on  January  11 
for  the  consideration  of  other  questions  involved  in 
the  Shantung  controversy,  but  it  was  not  until  Janu- 
ary 30  that  the  two  Delegations  found  themselves 
in  a  position  again  to  take  up  the  matter  of  the 
railway. 

During  this  interval  of  more  than  three  weeks  a 
number  of  plans  emanating  from  American  and 
British  sources  were  brought  to  the  attention  of  the 
Chinese  and  Japanese  representatives  with  a  view  to 
bringing  them,  if  possible,  into  agreement.  Also  per- 
sonal and,  of  course,  wholly  informal  interviews  were 
held  with  Secretary  Hughes,  Mr.  Balfour  and  other 
representatives  of  the  American  and  British  Govern- 
ments. Mr.  Sze,  of  the  Chinese  Delegation,  also  had 
an  interview  with  Mr.  Harding,  President  of  the 
United  States.  As  a  result  of  these  efforts,  it  finally 
appeared  that  an  agreement  might  be  reached  upon 
certain  terms  that  had  been  brought  to  the  attention 
of  both  Delegations,  and,  therefore,  vdth  this  expec- 
tation in  view,  the  matter  of  the  Shantung  Railway 
was  again  taken  up  in  the  Conversations  at  the 
meeting  held  January  30. 


SHANTUNG  '  323 

Agrcsement  Reached.  At  this  and  the  next  meeting, 
held  the  following  day,  the  following  agreements  in 
addition  to  those  previously  reached,  were  arrived  at : 

(1)  The  transfer  of  the  railway  and  its  appurtenant  properties 
to  the  Chinese  Government  to  be  completed  as  soon  as  possible 
and  in  any  case  not  later  than  nine  months  from  the  date  of  the 
coming  into  force  of  the  Shantung  Treaty ; 

(2)  China  to  make  payment  for  the  railway  in  Chinese  Govern- 
ment Treasury  Notes,  secured  on  the  properties  and  revenues  of 
the  railway,  and  running  for  a  period  of  fifteen  years,  but  redeem- 
able, whether  in  whole  or  in  part,  at  the  option  of  China,  at  the  end 
of  five  years  from  the  date  of  the  delivery  of  the  Notes,  or  at  any 
time  thereafter  upon  six  months'  previous  notice ; 

(3)  Pending  the  redemption  of  these  Notes  the  Government  of 
China  to  select  and  appoint  a  Japanese  subject  as  Trafl&c  Manager 
of  the  road  and  another  Japanese  subject  as  Chief  Accountant 
jointly  with  a  Chinese  Chief  Accountant  with  coordinate  functions ; 
these  officials  to  be  under  the  **  direction,  control  and  supervision  '* 
of  the  Chinese  Managing  Director  of  the  road  and  to  be  removable 
for  cause. 

Understandings  Recorded  in  the  Minutes.  The  fol- 
lowing additional  understandings  were  reached  in 
the  Conversations  and  recorded  upon  their  Minutes : 

1.  That  the  redemption  by  China  of  the  Treasury  Notes  will  not 
be  effected  with  funds  raised  from  other  than  Chinese  sources. 

2.  That  financial  details  of  a  technical  character  relating  to  the 
Notes  will  be  determined  in  mutual  accord  between  the  Chinese 
and  Japanese  authorities  as  soon  as  possible,  but  in  any  case  not 
later  than  six  months  from  the  coming  into  force  of  the  Shantimg 
Agreement. 

3.  That  the  transfer  of  the  road  shall  be  completed  as  soon  as 
possible,  and  in  any  case,  not  later  than  six  months  from  the  date 
of  the  coming  into  force  of  the  Shantimg  agreement. 

4.  That  all  light  railways,  including  the  lands  appurtenant 
thereto,  built  by  Japan  in  Shantung  during  her  military  occupation 


324  CHINA  AT  THE  CONFERENCE 

shall  be  transferred  to  China  at  the  time  the  Shantung  Railway  is 
transferred. 

5.  That,  after  two  and  a  half  years  from  the  date  of  the  transfer 
of  the  Railway,  the  Chinese  Government  may  appoint  an  Assistant 
TraflBc  Manager  of  Chinese  Nationality,  for  a  period  of  two  and  a 
half  years,  and  that  such  Assistant  Chinese  Traffic  Manager  may 
also  be  appointed  at  any  time  after  six  months'  notice  for  the  re- 
demption of  the  Treasury  Notes  is  given  by  the  Chinese  Government. 

6.  That  Japan  has  no  intention  to  claim  that  China  is  under  any 
obligation  to  appoint  Japanese  nationals  as  members  of  the  sub- 
ordinate staff  of  the  Japanese  Traffic  Manager  or  of  the  Japanese 
Chief  Accountant.  The  discussion  showed,  as  to  this  understanding, 
that  Japan  would  make  no  such  claim  as  a  matter  either  of  legal 
right  or  of  fact. 

7.  That  the  Chinese  Managing  Director  of  the  Railway  will 
appoint  the  entire  subordinate  staff  of  the  Japanese  Traffic  Manager 
and  the  Japanese  Chief  Accountant. 

8.  That,  in  the  selection  of  Japanese  experts  for  the  positions  of 
Traffic  Manager  and  Chief  Accountant,  the  Chinese  Government 
will  ask  the  Japanese  Government  for  such  information  as  may  be 
useful  in  making  suitable  selections. 

9.  That,  on  the  taking  over  of  the  Shantung  Railway,  the  Chinese 
authorities  are  to  have  full  power  and  discretion  to  continue  or  to 
remove  the  present  employees  of  Japanese  nationality  in  the  service 
of  the  Railway,  and  that  reasonable  notice  of  dismissal  may  be  given 
before  the  date  of  the  transfer  of  the  Railway.  Detailed  arrange- 
ments regarding  the  replacements,  which  are  to  take  effect  im- 
mediately upon  the  transfer  of  the  Railway,  are  to  be  made  by  the 
Chinese  and  Japanese  authorities. 

10.  That,  pending  the  transfer  to  China  of  the  Shantung  Rail- 
way, no  new  agreements  or  contracts  will  be  made  on  that  railway 
by  the  present  administration ;  and  that  as  to  existing  contracts  or 
other  commitments,  which  may  conflict  with  Chinese  railway  policy 
or  interests,  the  present  administration  will  see  to  it  that  their 
operation  ceases  with  the  transfer  of  the  Railway  to  China,  but  that 
this  understanding  is  not  to  prevent  the  Japanese  authorities  from 
buying  material  for  making  repairs  that  are  absolutely  necessary  to 
the  Railway. 


SHANTUNG  325 

11.  That  the  construction  of  the  Chefoo-Weihsien  Railway  is  to 
be  financed  by  Chinese  capitalists. 

12.  That  the  telegraph  administration  is  part  of  the  Shantung 
Railway  and  will  be  handed  back  to  China  at  the  time  the  Railway 
is  transferred. 

13.  That  all  the  Japanese  post-offices  in  Shantung  outside  of  the 
leased  area  of  Kiaochow  will  be  withdrawn  before  January  1,  1923, 
if  the  Shantung  Agreement  has  come  into  force  before  that  date; 
and  that,  otherwise,  they  will  be  withdrawn  not  later  than  that  date. 
That  all  Japanese  post-offices  within  the  leased  area  will  be  with- 
drawn at  the  time  of  the  transfer  to  China  of  the  administration 
of  that  area. 

14.  That  the  forestry  in  the  leased  area  connected  with  the  con- 
servation of  water  supply  will  be  transferred  to  China  in  the  same 
category  as  the  other  public  properties  formerly  belonging  to  Ger- 
many. 

15.  That  all  claims  for  restitution  of  land  in  Shantung  belonging 
to  Chinese  citizens  but  occupied  by  Japanese  authorities  without 
satisfactory  arrangements,  and  all  claims  for  compensation  arising 
from  injuries  caused  in  Shantung  to  the  public  property  of  China 
or  to  persons  and  property  of  Chinese  citizens  by  Japanese  authori- 
ties, during  the  period  of  Japanese  occupation,  shall  be  jointly  in- 
vestigated by  a  Sino-Japanese  Commission  and  if  they  are  found 
just,  the  Japanese  Government  will  cause  fair  reparation  to  be  made. 

16.  That  all  claims  for  lands  in  Shantung  belonging  to  Chinese 
citizens  but  occupied  by  Japanese  subjects,  without  satisfactory 
arrangements,  and  all  claims  for  compensation  arising  from  injuries 
caused  in  Shantung  to  the  public  property  of  China  or  to  the  persons 
or  property  of  Chinese  citizens  by  Japanese  subjects,  during  the 
period  of  Japanese  occupation,  shall  be  similarly  investigated  for 
final  adjustment. 

17.  That  the  omission  of  reference  in  the  Shantung  Treaty  to 
questions  of  claims  shall  not  be  deemed  to  prejudice  any  claims 
which  China  or  Chinese  citizens  may  have  against  the  Japanese 
Government  or  against  Japanese  subjects  arising  during  the  period 
of  Japanese  occupation. 


326  CHINA  AT  THE  CONFERENCE 

Joint  Commission.  For  the  settlement  of  various 
matters  and  details  upon  which  it  was  not  possible 
to  come  to  a  precise  and  definite  agreement  in  the 
Conversations,  or  to  provide  for  in  the  Shantung 
Treaty  itself,  it  was  agreed  that  there  should  be 
created  a  Joint  Commission  of  six  members,  three 
to  be  appointed  by  each  of  the  two  Governments, 
which  was  to  have  the  following  functions  and 
powers : 

To  make  and  carry  out  detailed  arrangements  relating  to  the 
transfer  of  the  administration  of  the  former  German  Leased  Terri- 
tory of  Kiaochow  and  to  the  transfer  of  public  properties  in  the 
said  Territory  and  to  settle  other  matters  likewise  requiring  adjust- 
ment.   (Article  II  of  Shantung  Treaty.) 

By  other  provisions  of  the  Shantimg  Treaty  this 
Commission  is  specifically  authorized: 

1.  To  arrange  details  regarding  the  transfer  of  public  properties ; 

2.  To  arrange  the  mode  and  terms  upon  which  the  mines  of 
Tsechwan,  Fangtze  and  Chinlingchen  are  to  be  vested  in  a  Chinese 
chartered  corporation. 

3.  To  adjust  all  questions  relating  to  the  status  or  validity  of 
vested  rights  acquired  in  Kiaochow  by  Japanese  subjects  or  com- 
panies. 

4.  To  make  arrangements  for  the  transfer  to  China  of  Japanese 
interests  in  the  salt  industries  and  the  exportation  to  Japan  of  a 
quantity  of  salt  produced  by  such  industries. 

5.  To  arrange  details  of  the  transfer  of  and  compensation  for, 
the  Japanese  wireless  stations  at  Tsingtao  and  Tsinanfu. 

Results  of  the  Conversations  Communicated  to 
Secretary  Hughes  and  Mr.  Balfour.  It  was  agreed 
that  the  results  of  the  Conversations  should  be  re- 
ported to  Secretary  Hughes  and  Mr.  Balfour.  This 
was  done  by  both  the  Delegations  on  February  1,  and, 


SHANTUNG  327 

as  has  been  earlier  mentioned,  Mr.  Hughes  in  trim 
reported  these  results  to  the  Conference. 

An  Estimate  of  the  Merits  of  the  Shantung  Agree- 
ment. Inasmuch  as,  in  the  opinion  of  the  writer, 
Japan  never  had  equitable  rights  in  Shantimg  save, 
possibly,  such  as  might  have  accrued  to  her  during 
the  period  when  her  occupation  of  Kiaochow  was 
justified  by  strict  military  necessity,  it  can  scarcely 
be  said  that  there  was  an  equitable  basis  for  such 
concessions  as  were  made  to  her  by  the  Chinese  in  the 
final  Shantung  settlement.  It  is  clear,  however,  that, 
from  the  juristic  point  of  view,  Japan  had  in  Shan- 
tung legal  rights  vis  a  vis  China  which  could  only  be 
denied  by  denying  the  validity  of  the  Sino-Japanese 
Agreements  of  1915  and  1918.  But,  leaving  aside 
questions  both  of  equitable  and  legal  rights,  and  re- 
garding the  situation  that  existed  at  the  time  the 
Conversations  were  entered  upon,  namely,  that  Japan 
was  in  actual  possession  and  China  was  without  the 
power  to  dispossess  her,  it  is  easily  demonstrable  that 
China  won  an  almost  complete  victory.  The 
Kiaochow  lease  and  the  other  rights  that  had  been 
granted  to  Germany  are  wholly  abrogated.  China  is 
to  get  back  all  the  public  properties  in  Tsingtao  and 
the  Province  generally  under  conditions  as  regards 
compensation,  etc.,  that  are  essentially  reasonable  and 
such  as  she  would  presumably  have  been  fully  willing 
to  grant  to  Germany  had  Germany,  before  the  war, 
offered  to  surrender  them  to  China.  Every  vestige 
of  special  German  or  Japanese  treaty  or  contractual 
rights  in  the  Province  disappears,  with  only  the 
following  exceptions  so  far  as  Japan  is  concerned : 


328  CHINA  AT  THE  CONFERENCE 

1.  Such  public  properties  in  the  former  leased  area  as  may  be 
needed  for  the  Japanese  Consulate,  are  to  be  retained  by  Japan 
and  properties  for  the  special  benefit  of  the  Japanese  community  in 
Kiaochow,  such  as  public  schools,  shrines  and  cemeteries,  are  to  be 
left  in  the  hands  of  that  community. 

2.  The  mines  of  Tsechwan,  Fangtze  and  Chinlingchen  are  to  be 
operated  by  a  company  chartered  by  the  Chinese  Government  in 
which  Japanese  capital  may  equal  the  Chinese  capital. 

3.  The  exportation  to  Japan  of  a  quantity  of  salt  produced  by 
salt  industries  along  the  coast  of  Kiaochow  Bay  is  to  be  permitted 
by  the  Chinese  Government,  on  reasonable  terms. 

4.  In  the  management  and  maintenance  of  the  public  works  in  the 
former  leased  area,  the  foreign  community  (most  of  whom  are  now 
Japanese)  are  to  have  fair  representation;  and,  in  the  operation 
of  the  telephone  system  due  consideration  is  to  be  given  to  requests 
from  the  foreign  community  for  such  extensions  and  improvements 
as  may  be  reasonably  demanded  by  the  general  interests  of  the 
public. 

5.  In  the  administration  of  the  Maritime  Customs  Japanese 
traders  ai:e  to  be  permitted  to  communicate  with  the  Customs  House 
of  Tsingtao  in  their  own  language,  and  the  Inspector-General  is 
to  be  instructed  to  give  consideration,  within  the  limits  of  the 
established  service  regulations,  to  the  diverse  needs  of  the  trade  of 
Tsingtao,  in  the  selection  of  a  suitable  staff  for  such  Customs  House. 

6.  For  a  limited  period  of  time,  the  Chinese  Government  is  to 
employ  upon  the  Shantung  Eailway  a  Japanese  as  Traffic  Manager, 
and,  in  coordination  with  a  Chinese  Chief  Accountant,  a  Japanese 
as  Chief  Accountant. 

Only  as  to  this  last-named  concession  to  Japan  can 
there  be  any  question  as  to  reasonableness,  or  as  to  a 
possible  jeopardizing  of  Chinese  interests.  And,  even 
as  to  this  concession,  an  examination  of  its  extent 
shows  that  if  the  Chinese  authorities  make  proper  use 
of  the  rights  of  administration  control  reserved  to 
them,  the  Japanese  Traffic  Manager  and  Chief 
Accountant,  during  the  limited  period  of  time  they 


SHANTUNG  329 

are  to  be  employed,  will  not  have  the  power  to  dis- 
criminate against  or  otherwise  injure  legitimate 
Chinese  interests,  even  should  they  be  disposed  to  do 
so.  As  to  this  the  writer  can  do  no  better  than  quote 
the  following  statement  of  Mr.  John  E.  Baker, 
Adviser  since  1917  to  the  Chinese  Ministry  of  Com- 
munications : 

The  Chinese  people  are  to  be  congratulated  upon  the  settlement 
of  the  Shantung  question.  By  agreeing  to  the  railway  settlement 
the  whole  Shantung  question  is  settled.  China  gets  rid  of  2,000 
Japanese  employees  at  the  price  of  retaining  only  two.  The  price  to 
be  paid  for  the  railway  is  to  be  no  greater  than  that  which  Japan 
paid  for  it,  and  will  probably  be  less  than  it  would  cost  to  reproduce 
the  railway  today.  China  has  five  years  or  fifteen  years  at  her  option, 
within  which  to  raise  the  purchase  price.  The  railway  can  be  made 
to  pay  for  itself  within  the  fifteen  year  limit.  While  it  would  have 
been  desirable  to  get  rid  of  all  Japanese  participation  in  this  railway 
immediately,  there  will  be  certain  benefits  accruing  to  a  campaign 
extending  for  five  years  during  which  the  purpose  of  eliminating 
Japanese  influence  from  Shantung  is  placed  before  the  Chinese 
people. 

There  has  been  a  very  real  fear  that  if  employees  of  Japanese 
nationality  remained  upon  the  railway,  some  means  will  be  found 
by  Japan  to  retain  possession  of  the  line.  If  that  were  the  ultimate 
intention  of  Japan  there  was  no  need  whatever  for  her  to  have 
entered  into  these  negotiations.  Supporting  her  position  in  Shan- 
tung, she  had  the  signed  agreement  of  the  three  most  powerful 
European  nations.  This  support  Japan  has  now  signed  away.  In 
the  case  of  Siberia,  Japan  had  no  support  of  this  kind,  yet  she 
openly  defied  the  United  States  and  the  expressed  opinion  of  other 
Delegations,  and  got  away  with  it.  If  she  had  intended  to  remain 
in  Shantung,  she  could  have  done  so. 

Furthermore,  the  Japanese  Traffic  Manager  and  the  Japanese 
Chief  Accountant  (the  latter  of  whom  acts  jointly  with  the  Chinese 
Chief  Accountant)  are  so  hedged  about  with  limitations  to  their 
powers  that  under  a  vigorous  Chinese  administration  they  should 


330  CHINA  AT  THE  CONFERENCE 

be  harmless.  They  are  "under  the  direction,  control  and  super- 
vision of  the  Chinese  Managing  Director/'  Take  the  case  of  the 
Traffic  Manager.  By  no  means  will  he  have  unrestricted  liberty  of 
action  in  the  performance  of  his  duties.  Upon  the  Chinese  Govern- 
ment railways  there  are  at  present  two  organizations  of  the  Traffic 
Managers;  (1)  the  Through-traffic  Conference  and  (2)  the  General 
Traffic  Conference.  Both  of  these  conferences  meet  at  least  once 
a  year,  but  generally  an  extra  conference  or  two  is  called  by  the 
Ministry  of  Communications  for  specific  purposes.  The  first  is 
composed  of  representatives  of  the  through-traffic  lines  and  of  the 
Through-traffic  Administration  in  the  Ministry  of  Communications, 
while  the  second  is  composed  of  Traffic  Managers  of  all  Government 
lines  together  with  representatives  of  the  General  Traffic  section  of 
the  Ministry  of  Communications. 

The  Traffic  Manager  of  the  Shantung  Eailway  will  go  into  one  or 
the  other  or  both  of  these  conferences.  These  conferences  act  as  a 
legislative  body  which  passes  the  laws  governing  the  traffic  depart- 
ment upon  all  the  lines  participating  in  such  conferences.  The  law 
comes  into  effect  when  approved  by  the  Minister  of  Communications, 
and  is  administered  by  the  Traffic  Manager  as  the  representative, 
under  the  Managing  Director,  of  the  Ministry  of  Communications. 
Thus  this  Traffic  Manager  wiU  be  subject  to  the  control  which  comes 
from  association  with  technical  representatives  of  other  lines  as  well 
as  the  control  of  his  own  Managing  Director.  To  escape  from  such 
control  either  he  must  defy  his  colleagues  in  the  conference  or 
deliberately  disobey  the  Ministry  of  Communications,  in  which  case 
he  is  subject  to  removal  by  the  Director,  power  to  do  which  is  ex- 
pressly reserved  in  the  agreement. 

Such  conferences  have  already  prescribed  a  uniform  classification 
of  goods;  uniform  rules  for  the  carriage  of  goods  and  passengers, 
baggage  and  parcels;  uniform  rules  for  car  distribution  and  re- 
porting of  car  performance.  The  formulation  of  uniform  operating 
rules,  signalling  rules,  and  civil  service  rules  is  already  under  way. 
Other  subjects  will  follow. 

A  similar  condition  will  be  found  governing  the  Chief  Accountant, 
who  will  be  subject  to  the  scrutiny  of  a  Chinese  Chief  Accountant, 
as  well  as  of  the  Managing  Director.  The  uniform  classifications 
of  accounts  on  Chinese  railways  have  been  in  force  for  several  years. 


SHANTUNG  331 

The  conferences  of  the  Accountants  have  had  nearly  eight  years  of 
successful  history.  Practically  the  whole  field  of  accounts  has  been 
covered,  and  these  classifications  and  accounting  rules  are  a  part  of 
the  railway  law  of  China  which  the  Japanese  Chief  Accountant  will 
be  compelled  to  follow. 

The  accounts  and  statistics  required  of  Chinese  railways  are  con- 
sidered by  experts  to  be  among  the  best  in  the  world.  If  used  intelli- 
gently they  hold  to  rigid  accountability  both  the  integrity  and 
efficiency  of  operating  officers.  If  care  is  taken  to  appoint  a  vigorous 
and  intelligent  Managing  Director,  China  has  little  to  fear  from  the 
presence  of  a  Japanese  Traffic  Manager  or  Accountant. 

As  a  matter  of  fact  this  settlement  secures  better  terms  for  China 
than  are  to  be  found  in  any  other  railway  contracts  negotiated  under 
the  Republic.  All  such  other  contracts  place  a  mortgage  on  the 
line  and  yield  commissions  on  foreign  supplies  purchased  by  the 
railway  or  limit  the  freedom  of  the  government  as  to  banks  with 
which  it  will  deal.  All  of  this  is  avoided  in  the  Shantung  Agree- 
ment. All  of  them  provide  for  a  foreign  Chief  Accountant  who  acta 
alone,  while  this  agreement  gives  China  an  associate  Chief  Account- 
ant. All  of  them  provide  for  foreign  Chiefs  of  Maintenance  of  Way, 
of  Locomotives  and  of  Traffic,  or  else  for  a  foreign  General  Manager, 
compared  with  a  mere  Traffic  Manager  on  the  Shantung  Railway. 
Besides,  all  of  these  agreements  were  made  in  days  before  China 
possessed  any  of  the  machinery  described  above  for  circumscribing 
the  powers  of  any  of  these  officers.  Today,  China  can  safely  be  far 
more  liberal  in  appointments  of  foreigners  than  she  could  be  five 
or  six  years  ago,  yet  this  agreement  is  much  more  consenative  than 
those  negotiated  by  Sun  Yat  Sen  and  others  in  1913,  1914  and  1915. 

In  fact,  on  lines  where  the  Government  is  under  little  or  no 
compulsion  to  use  foreigners,  China  has  voluntarily  placed  foreign 
accountants,  engineers  and  mechanical  experts  in  much  larger  num- 
bers than  are  required  in  their  contract. 

There  is  nothing  to  fear  from  the  present  arrangement  if  China 
will  merely  use  ordinary  vigor,  intelligence  and  integrity  in  her 
handling  of  the  situation. 

In  case  there  should  be  any  disposition  to  defy  such  established 
conditions — a  disposition  which  is  not  expected  at  present  by  any 
one  conversant  with  these  negotiations — the  machinery  has  been 


332  CHINA  AT  THE  CONFERENCE 

provided  by  conference  for  the  establishment  of  a  Board  of  Reference 
which  will  make  an  attempt  on  the  part  of  Japan  to  take  advantage 
of  China's  weakness  pubHcly  apparent.  There  can  be  no  greater 
protection  at  the  present  time.^ 

If  further  evidence  were  needed  of  the  satisfaction 
with  which  the  Chinese  people  should  receive  the 
Shantung  settlement  reached  at  Washington,  atten- 
tion may  be  called  to  the  fact  that  the  terms  of  that 
settlement  are  decidedly  more  favorable  to  China  than 
were  those  which  the  Chinese  Government  instructed 
its  representative,  Dr.  Koo,  to  present  in  1921  to  the 
League  of  Nations  at  Genoa.  These  provided  that 
the  Tsinanf u-Shunteh  and  Kaomihsu  railways  should 
be  given  over  to  the  new  International  Banking 
Consortium  for  operation,  and  that  the  Tsingtao- 
Tsinanf  u  road  should  be  operated  by  China  herself ; 
or,  a  future  date  for  the  return  of  this  road  having 
been  agreed  upon,  pending  that  return,  it  should  be 
operated  on  a  joint  capital  and  business  basis.  As 
to  the  operation  of  the  mines,  they  might  be  made  a 
joint  Sino- Japanese  undertaking. 


'  Mr.  Baker  waa  in  Washington  during  most  of  the  time  the  Conference 
was  in  session,  and  his  expert  advice  was  of  great  value  to  the  Chinese 
Del^ation. 


CHAPTER  XXIV 
Results 


"We  are  now  in  a  position  to  summarize  the  results 
of  the  Conference  so  far  as  China  is  concerned  as 
well  as  to  draw  some  conclusions  as  to  the  bearing  of 
these  results  upon  the  general  political  situation  in 
the  Far  East. 

It  is  doubtless  true  that  China  did  not  obtain  all 
that  she  wished  to  obtain,  or  all  that  her  friends 
hoped  she  would  secure.  None  of  the  Powers  repre- 
sented at  the  Conference  did  that, — ^not  even  the  most 
powerful  of  them.  But  it  is  certain  that  China 
obtained  all,  and  possibly  more  than,  it  was  reason- 
able to  expect  that,  under  the  existing  circumstances, 
she  would  be  able  to  obtain.  The  Conference  was  one 
of  Sovereign  States.  It  was  called  to  promote  peace 
and  not  to  bring  controversies  to  an  acute  issue. 
It  was  therefore  impossible  for  any  of  the  Powers 
to  obtain  action  except  with  regard  to  mattei*s  upon 
which  a  unanimous  agreement  could  be  reached.  It 
was  hoped  that,  at  the  Conference,  the  Powers  would 
exhibit  an  intelligent  cooperation  and,  by  making 
mutual  concessions,  create  a  situation  in  the  Pacific 
and  Far  East  that  would  be  of  mutual  advantage  to 
them  all.  But  it  was  too  much  to  expect  that  the 
nations  would  suddenly  free  themselves  from  all  self- 
ish and  purely  nationalistic  aims,  and  no  one,  there- 

333 


334  CHINA  AT  THE  CONFERENCE 

fore,  looked  forward  to  results  that  would  be  wholly 
dictated  by  altruism  and  enlightened  humani- 
tarianism. 

It  is  furthermore  to  be  observed  that  though,  upon 
its  political  side,  the  Conference  devoted  itself  almost 
exclusively  to  a  consideration  of  problems  of  China, 
it  had  not  been  called  primarily  for  that  purpose.  Its 
primary  purpose  was  to  clear  up  the  general  political 
situation  in  the  Pacific  and  Far  East  so  as  to  render 
less  likely,  in  the  future,  international  controversies 
or  possible  wars.  It  was  only  as  incidental  to  this 
end,  that  China's  problems  were  involved.  In  other 
words,  it  was  only  in  so  far  as  the  rehabilitation  of 
China  as  an  autonomous  Power  with  a  stable  and 
efficient  government  was  conceived  to  be  a  condition 
precedent  to  a  correction  of  the  general  political  situ- 
ation in  the  Far  East,  that  the  Conference  was  under 
obligation  or  necessity  to  give  any  attention  whatever 
to  China's  case.  This  fact  is  to  be  steadily  borne  in 
mind  in  considering  what  China  had  a  right  to  expect 
from  the  Conference. 

In  a  communication  to  the  November,  1921,  issue  of 
the  Chinese  Students^  Monthly,  the  writer  called 
attention  to  the  fact  that  it  was  China's  great  good 
fortune  that  she  was  able  to  approach  the  Conference 
table  with  no  acts  of  aggression  of  her  own  toward 
other  friendly  Powers  which  needed  to  be  explained 
or  defended,  and  that  she  would  appear  as  a  peti- 
tioner for  the  recognition  of  principles  which  would 
be  not  only  just  in  themselves  but  of  benefit  to  all  the 
Powers.  In  another  respect,  however,  China  was, 
as  has  been  earlier  dwelt  upon,  very  unfortunately 


EESULTS  335 

circumstanced  at  Washington.  This  was  due  to  the 
fact  that,  for  several  years,  there  had  been  disorder 
in  her  own  household ;  that  some  of  her  administra- 
tive services  had  been  notoriously  ineffective ;  that  her 
armies  had  not  been  under  adequate  control  by  the 
civil  authorities ;  and  that  there  were  a  number  of  her 
provinces  which  had  openly  refused  to  recognize  the 
legitimacy  of  the  Government  at  Peking  whose  Dele- 
gates were  at  the  Conference,  and  had  given  their 
nominal  allegiance  to  an  organization  with  head- 
quarters at  Canton  which  claimed  to  be  the  only  gov- 
ernment of  China  with  a  constitutional  status;  and 
that,  finally,  to  make  matters  still  worse  for  the  Chi- 
nese Delegation  at  Washington,  just  before  the  open- 
ing of  the  Conference,  the  Peking  Government  had 
been  obliged  to  make  default  upon  certain  of  its 
foreign  loans. 

The  foregoing  facts  lay  in  the  minds  of  the  Dele- 
gates of  all  of  the  Powers  represented  at  the  Con- 
ference, and  necessarily  influenced  their  policies. 
They  were  facts  from  the  influence  of  which  the  Chi- 
nese Delegation  could  not  hope  to  escape.  Indeed, 
it  is  well  known  that,  because  of  them,  China  came  to 
the  Conference  with  anxious  fears  as  well  as  with 
eager  hopes.  There  was  ever  present  in  the  minds  of 
her  public  men  the  apprehension  lest  the  Powers, 
when  assembled  in  the  conference,  should  deem  it 
desirable,  and  seize  the  opportimity  by  common  agree- 
ment, to  improve  conditions  in  China  by  the  imposi- 
tion upon  her  of  additional  forms  of  administrative 
control  instead  of  waiting  for  the  perhaps  slower 
processes  of  autonomous  political  development. 


336  CHINA  AT  THE  CONFERENCE 

No  New  Bonds  Upon  China.  It  was,  therefore,  a 
great  victory  for  China  when  the  Powers  at  the  be- 
ginning of  the  Conference  declared  their  firm  inten- 
tion.to  respect  the  sovereignty,  the  independence,  and 
the  territorial  and  administrative  integrity  of  China ; 
to  provide  for  her  the  fullest  opportunity  to  develop 
and  maintain  for  herself  an  effective  and  stable  Gov- 
ernment; and  to  refrain  from  taking  advantage  of 
existing  conditions  in  China  in  order  to  seek  special 
rights  or  privileges  which  would  abridge  the  rights  of 
subjects  or  citizens  of  friendly  States  and  from 
countenancing  action  inimical  to  the  security  of  such 
States. 

Under  the  guidance  of  these  principles,  the  Powers 
abstained  throughout  the  Conference  from  attempt- 
ing to  create  Boards  or  Commissions  or  other  bodies 
which  should  function  in  China  without  China's  con- 
sent, or  which,  in  any  case,  would  have  legislative, 
executive  or  administrative  powers.  Thus  the  Tariff 
Revision  Commission,  which  is  to  meet  at  Shanghai, 
has  only  the  function  of  revising  tariff  valuations  so 
as  to  increase  China's  revenues;  the  Special  Confer- 
ence which  is  to  be  convened,  is  to  have  for  its  func- 
tion the  preparation  of  the  way  for  the  speedy  aboli- 
tion of  Likin — a  result  desired  by  China — and  for 
the  fulfillment  of  other  conditions  whereby  China  may 
be  enabled  to  obtain  a  greatly  increased  return  from 
her  maritime  customs ;  ^  the  Extraterritorial  Com- 
mission is  organized  to  inquire  into   the  present 

^  This  Special  Conference  has  also  been  authorized  to  suggest  a  detailed 
plan  for  the  Board  of  Reference  to  which  may  be  referred  questions  arising 
out  of  the  application  of  the  Open  Door  principle. 


RESULTS  337 

practice  of  extraterritorial  rights  in  China,  and  into 
the  laws  and  judicial  administration  of  China  in 
order  that  it  may  make  recommendations — ^but  recom- 
mendations only — as  to  the  means  whereby  existing 
conditions  of  the  administration  of  justice  in  China 
may  be  so  improved  as  to  warrant  the  Powers  in 
progressively  or  otherwise  relinquishing  their  extra- 
territorial rights.  It  is  declared  that  the  Chinese 
Government  shall  have  the  right  to  appoint  a  repre- 
sentative to  sit  as  a  member  of  this  Commission,  and 
that  China  is  to  be  deemed  free  to  accept  or  reject 
any  or  all  of  the  recommendations  of  the  Commission. 
The  Board  of  Reference,  which  is  provided  for  by 
one  of  the  Resolutions  adopted  by  the  Conference  for 
dealing  with  questions  arising  in  connection  with 
Open  Door  provisions  of  the  "  Nine  Power  Treaty 
Relating  to  Principles  and  Policies  to  be  Followed  in 
Matters  Concerning  China  "  has  only  powers  of  in- 
vestigation and  report,  and  these  powers  it  may  exer- 
cise, not  upon  its  own  initiative,  but  only  as  to  matters 
that  may  be  referred  to  it. 

It  was  at  one  time  suggested  in  the  Conference 
that  the  Powers  should  establish  some  sort  of  Board 
or  Commission  authorized  to  make  a  general  inquiry 
into  conditions  of  law  and  order  in  China  in  order 
to  determine  whether  or  not  certain  of  the  Powers 
were  justified  in  maintaining  their  troops  in  China; 
but,  at  the  suggestion  of  the  Chinese  Delegation,  this 
proposal  was  changed  so  as  to  provide  merely  that, 
if  and  when  China  should  so  request,  the  representa- 
tives of  the  Powers  at  Peking  might,  in  association 
with  three  representatives  of  the  Chinese  Govem- 
23 


338  CHINA  AT  THE  CONFERENCE 

ment,  make  such  an  inquiry  as  regards  not  of  all  of 
China  but  as  to  troops  maintained  in  particular 
localities. 

As  regards  the  railways  of  China  the  Powers  placed 
themselves  upon  record,  as  expressed  in  a  formal 
resolution,  that  it  is  their  hope  that  the  future  devel- 
opment of  Chinese  railways  will  be  so  conducted  as 
to  enable  the  Chinese  Government  to  effect  their  uni- 
fication into  a  single  system  under  Chinese  control 
with  such  foreign  financial  and  technical  assistance 
as  may  be  necessary  in  the  interests  of  the  system,  it 
of  course  being  understood  that  the  Chinese  Govern- 
ment shall  determine  when  this  financial  or  technical 
assistance  is  to  be  asked  for,  and  what  its  character 
shall  be.  Even  with  regard  to  the  Chinese  Eastern 
Railway,  the  Conference  forebore  to  disregard  the 
washes  of  the  Chinese  representative  upon  the  techni- 
cal committee  that  was  asked  to  report  upon  the 
road's  future  status,  and  contented  itself  with  merely 
declaring  that  it  was  desirable  that  better  protection 
should  be  given  to  the  railway  and  to  those  using  it ; 
that  it  should  be  more  efficiently  operated,  and  that 
China  would  be  held  responsible  for  the  obligations 
to  foreign  creditors  of  the  road  resulting  from  the 
contracts  under  which  the  road  had  been  built  and  the 
action  of  China  thereunder. 

Despite,  then,  the  imdeniable  breakdown  of  the 
authority  of  the  Central  Government  of  China;  de- 
spite the  fact  that  it  had  been  obliged  to  make  default 
upon  certain  of  its  foreign  debts ;  despite  the  fact  that 
there  was  in  the  south  of  China  a  political  party  and 
political  organization  which  denied,  in  toto,  the  legiti- 


RESULTS  339 

macy  of  the  Peking  Government  itself,  China  came 
from  the  Conference  not  only  without  any  new  ad- 
ministrative or  other  limitations  upon  its  autonomous 
powers,  but  with  the  formal  and  unqualified  assur- 
ance that  the  Powers  would  not  take  any  advantage 
of  existing  conditions  to  impose  any  new  restraints 
upon  her  freedom  of  action. 

In  this  connection  the  writer  cannot  refrain  from 
expressing  his  admiration  of  the  manner  in  which  the 
Chinese  Delegates  took  jealous  and  successful  care 
to  place  upon  the  records  of  the  Conference,  in  clear 
and  unmistakable  terms,  the  principles  which  the 
Government  of  China  asserts  with  regard  to  those 
matters  concerning  which  full  and  immediate  relief 
could  not  be  obtained.  An  examination  of  these 
records  shows  that  no  concessions  or  admissions  were 
made  upon  China's  part  which,  in  the  future,  can  be 
brought  forward  to  plague  her,  or  to  operate  as  an 
estoppel  to  her  efforts  to  obtain,  upon  appropriate 
occasion,  further  and  complete  release  from  the  treaty 
bonds  which  still  restrain  the  autonomous  exercise  of 
her  powers,  or  relief  from  those  violations  of  her 
territorial  sovereign  rights  which,  to  a  certain  extent, 
still  oppress  her. 

Specific  Results  Gained  by  China.  Turning  now  to 
the  affirmative  work  of  the  Conference  it  is  seen  that 
China  obtained  the  following  substantial  benefits : 

China  is  to  have  an  immediate  revision  of  tariff 
valuations  so  as  to  be  able  to  collect  an  effective  five 
per  cent  upon  her  imports,  thereby  being  able,  it  is 
estimated,  to  increase  her  revenue  by  $17,000,000 
silver.    By  means  of  steps  to  be  arranged  for  by  a 


340  CHINA  AT  THE  CONFERENCE 

Special  Conference,  she  is  to  be  allowed  to  levy  a  sur- 
tax which  should  yield  $27,000,000  silver,  and  a 
further  surtax  on  luxuries  which  will  yield  something 
over  $2,000,000  silver.  Also,  when  the  work  of  the 
Special  Conference  is  completed  and  the  abolition  of 
Likin  effected,  the  additional  revenue  to  be  secured 
by  China  from  her  maritime  customs,  it  is  calculated, 
wiU  amount  to  $156,000,000  silver. 

A  Commission  is  to  be  appointed  which  is  to  report 
within  a  year  as  to  the  steps  to  be  taken  in  the  future 
whereby  China  may  be  aided  to  effect  such  legislative 
and  judicial  reforms,  in  addition  to  those  already 
achieved,  as  will  warrant  the  Powers  in  relinquishing, 
progressively  or  otherwise,  their  respective  rights  of 
extraterritoriality  in  China. 

All  foreign  post  offices  in  China  are  to  be  removed 
by  the  end  of  the  current  year,  and,  pending  this 
removal,  the  Powers  concerned  are  pledged  to  afford 
full  facilities  to  the  Chinese  customs  authorities  to 
examine  all  postal  matter,  except  ordinary  letters, 
with  a  view  to  determining  whether  or  not  they  con- 
tain dutiable  or  contraband  goods.  Thus  China  wiU 
be  able  not  only  to  prevent  frauds  upon  her  customs 
revenues,  but  to  check  what,  in  the  past,  has  been  a 
great  evil,  namely,  the  introduction  into  China, 
through  the  Japanese  parcels  posts,  of  great  amounts 
of  morphine. 

It  is  provided  that  China  can,  at  any  time  that  she 
wishes  to  do  so,  obtain  from  the  representatives  of  the 
Powers  at  Peking  an  inquiry  as  to  whether  there  is 
justification  for  the  retaining  upon  her  soil  of  foreign 
troops  or  police,  either  generally  or  in  particular 
localities. 


EESULTS  341 

Radio  stations,  installed  in  China  without  the  ex- 
press consent  of  her  Government,  are  to  be  removed 
or  sold  at  a  fair  valuation  to  China,  with,  however, 
the  proviso  that  questions  as  to  the  removal  of  sta- 
tions in  leased  areas,  in  the  South  Manchuria  Railway- 
zones  or  the  French  Settlement  at  Shanghai  are  to 
be  discussed  with  the  Powers  concerned. 

A  further  resolution  of  the  Conference,  which  will 
imdoubtedly  rebound  to  the  great  advantage  of  China, 
is  that  the  Powers  are  to  supply  and  make  public  lists 
of  all  treaties,  conventions,  exchange  of  notes  and 
other  agreements  which  they  claim  to  have  with  China 
or  with  any  other  Power  or  Powers  in  relation  to 
China  which  they  deem  to  be  in  force  and  upon  which 
they  desire  to  rely.  They  are  also  similarly  pledged 
to  supply  lists  as  nearly  complete  as  may  be  possible 
of  aU  contracts  between  their  nationals  on  the  one 
part,  and  the  Chinese  Government  or  any  of  its  ad- 
ministrative subdivisions  or  local  authorities  on  the 
other  part,  which  involve  any  concession,  franchise, 
option  or  preference  with  respect  to  railway  construc- 
tion, mining,  forestry,  navigation,  river  conservancy, 
harbor  works,  reclamation,  electrical  communica- 
tions, or  other  public  works  or  public  services,  or  for 
the  sale  of  arms  or  munitions,  or  which  involve  a  lien 
upon  any  of  the  public  revenues  or  properties  of  the 
Chinese  Government  or  of  any  of  its  administrative 
subdivisions. 

As  regards  Leased  Areas,  China  is  to  receive  back 
Weihaiwei  from  Great  Britain,  and  France  has 
agreed  to  enter  into  negotiations  with  China  for  the 
return  of  Kwanchow-wan. 


342  CHINA  AT  THE  CONFERENCE 

Finally,  in  connection  with,  if  not  technically  in, 
the  Conference,  China  won,  as  has  been  seen,  an 
almost  complete  victory  in  the  Shantung  controversy. 

Principles  and  Policies  Relating  to  China.  In  ad- 
dition to  the  foregoing  specific  items  of  reUef  which 
China  obtained  either  in,  or  in  connection  with,  the 
Conference,  are  to  be  added  the  emphatic  state- 
ments of  Principles  and  Policies  which,  in  the  Nine 
to  recognize  and  pursue  in  the  future  in  aU  their  rela- 
tions with  China.  Much  will  naturally  depend  upon 
the  good  faith  with  which  these  promises  are  carried 
out,  but  there  is  no  good  reason  for  supposing  that 
they  will  not  be  observed.  If  this  proves  true,  the 
general  political  situation  in  the  Pacific  and  Far 
East,  and  especially  as  regards  China,  will  be  a  much 
better  one  than  it  has  been  in  the  past. 

One  thing  is  certain,  upon  the  surface  the  situa- 
tion has  been  much  improved.  Not  only  have  certain 
matters  been  clarified,  but  specific  remedial  action  has 
been  taken.  The  claims  of  particular  Powers  to 
Spheres  of  Interest  in  China  which,  because  unde- 
fined and  vague  as  to  their  implications,  are 
provocative  of  controversy,  have  been  definitely  aban- 
doned. The  Open  Door  doctrine  has,  for  the  first 
time,  received  as  clear  a  definition  as,  from  the  nature 
of  the  case,  it  is  possible  to  give  it,  and  has  been 
embodied  in  treaty  form.  The  Lansing-Ishii  Agree- 
men  and  the  Anglo-Japanese  Alliance  with  their 
recognition  by  the  United  States  and  Great  Britain 
that  Japan  has  certain  imdetermined  "  special  inter- 
ests "  in  China  have  no  longer  any  force.    Hence- 


RESULTS  343 

forth  the  principle  of  publicity  is  to  be  applied  to  all 
cominitnients  of  political  significance  between  the 
Powers  or  their  nationals  on  the  one  side  and  the 
public  authorities  of  China  upon  the  other  side.  All 
past  agreements  upon  which  the  Powers  continue  to 
rely  are  to  be  made  known,  and  all  future  engage- 
ments are  to  be  similarly  published.  China's  rights 
as  a  neutral  are  to  be  respected  in  all  future  wars  to 
which  she  is  not  a  party.  Furthermore,  the  eight 
Powers,  other  than  China,  represented  at  the  Con- 
ference have,  in  a  formal  treaty  to  which  all  other 
Powers  with  Far  Eastern  interests  are  asked  to  ad- 
here, pledged  themselves  generally  to  respect  the  sov- 
ereignty, the  independence,  and  the  territorial  and 
administrative  integrity  of  China ;  to  provide  for  her 
the  fuDest  and  most  imembarrassed  opportunity  to 
develop  and  maintain  an  effective  and  stable  govern- 
ment ;  to  use  their  influence  for  the  purpose  of  effec- 
tually establishing  and  maintaining  the  principle  of 
equal  opportunity  for  the  commerce  and  industry 
of  all  nations  throughout  the  territory  of  China ;  and 
to  refrain  from  taking  advantage  of  conditions  in 
China  in  order  to  seek  special  rights  of  subjects  or 
citizens  of  friendly  States,  and  from  countenancing 
action  inimical  to  the  security  of  such  States.  And 
these  Powers  further  engage  **  not  to  enter  into  any 
treaty,  agreement,  or  understanding,  either  with  one 
another,  or,  individually  or  collectively,  with  any 
Power  or  Powers  which  would  infringe  or  impair  " 
these  principles.  By  the  Four  Power  Pact  the  United 
States,  Great  Britain,  France  and  Japan  agree  that 
should  any  controversy  develop  between  themselves 


344  CHINA  AT  THE  CONPEKENCE 

arising  out  of  any  Pacific  question  and  involving 
their  rights  in  relation  to  their  several  insular  pos- 
sessions or  insular  dominions  in  the  region  of  the 
Pacific  Ocean,  which  is  likely  to  affect  their  friendly 
relations,  they  will  jointly  confer  for  their  considera- 
tion and  adjustment ;  and  that  if  these  rights  should 
be  threatened  by  the  aggressive  action  of  any  other 
Power,  they  will  communicate  with  one  another  fully 
and  frankly  in  order  to  arrive  at  an  imderstanding 
as  to  the  most  efficient  measures  to  be  taken  jointly 
or  separately  to  meet  the  exigencies  of  the  particular 
situation.  So  far  as  this  pact  is  calculated  to  pre- 
serve the  peace  in  the  Pacific  and  Far  East,  China 
wiU  of  course  obtain  benefit  from  it. 

Anglo- Japanese  Alliance.  As  a  result  of  the  Four 
Power  Pact  between  the  United  States,  Great 
Britain,  France  and  Japan,  China  is  relieved  from 
what  she  has  justly  deemed  the  threatening  possibili- 
ties of  the  Anglo-Japanese  Alliance.  Though  not  a 
party  to  this  Alliance,  China  objected  to  it  as  in  dero- 
gation of  her  dignity  as  a  sovereign  State  insofar  as 
the  two  Parties  to  it  recognized  or  claimed  special 
interests  within  her  own  territory,  and  as  dangerous 
to  her  safety  in  that  these  Powers  agreed  to  consider 
in  common  the  measures  to  be  taken  to  safeguard 
those  rights  or  interests. 

That  China  was  justified  in  not  being  reassured  by 
the  declaration  of  the  Alliance  that  her  own  inde- 
pendence and  integrity  were  to  be  preserved  is  evi- 
dent when  one  considers  that  although  Korea's  sover- 
eignty and  independence  had  been  similarly  guaran- 


KESTJLTS  345 

teed  by  the  Alliance  in  its  first  form,  that  unfortunate 
country  three  years  later  passed  under  the  adminis- 
trative control  of  Japan  and,  &ve  years  later,  was 
annexed  by  that  coimtry  and  incorporated  into  its 
empire.  That  China  had  formally  protested  to  the 
British  Government  the  renewal  of  the  Alliance  is 
well  known.' 

That  Japan  used  her  Alliance  with  Great  Britain 
as  an  occasion  for  herself  coming  into  the  war  and 
thus  bringing  its  military  operations  into  the  Far 
East  and  upon  the  soil  of  China  is,  of  course,  well 
known.  In  her  Imperial  Rescript  of  August  23, 
1914,  declaring  war  against  Germany,  the  Japanese 
Emperor  declared:  **  the  action  of  Germany  has  at 
length  compelled  Great  Britain,  Our  Ally,  to  open 
hostilities  against  that  country,  and  Germany  is  at 
Kiaochow,  its  leased  territory  in  China,  busy  with 
warlike  preparations,  while  her  armed  vessels,  cruis- 
ing the  seas  of  East  Asia,  are  threatening  Our  com- 
merce and  that  of  Our  Ally.  The  peace  of  the  Far 
East  is  thus  in  jeopardy.  Accordingly,  Our  Govern- 
ment, and  that  of  His  Britannic  Majesty,  after  a  full 
and  frank  conununication  with  each  other,  agreed  to 
take  such  measures  as  may  be  necessary  for  the  pro- 

*  In  the  Memorandum  which  it  submitted  to  the  British  Government  the 
Chinese  Government  said :  "  Chinese  opinion  is  not  unnaturally  distrustful 
of  any  renewal  of  this  Agreement,  all  men  holding  that  China  has  suffered 
enough  from  its  operation  during  the  World  War  in  the  matter  of  Shantung. 
Furthermore,  as  China  became  a  member  of  the  League  of  Nations  she  is 
advised  that  a  contract  regarding  her  affairs  between  the  other  members 
of  the  League  of  Nations  cannot  be  entered  into  without  her  prior  consent. 
Article  X  of  the  Covenant  is  sufficient  guarantee  that  her  territorial 
integrity  will  be  respected." 


346  CHINA  AT  THE  CONFERENCE 

tection  of  the  general  interests  contemplated  in  the 
Agreement  of  Alliance."  * 

It  is  scarcely  open  to  doubt  that  the  existence  of 
her  alliance  with  Great  Britain  gave  to  Japan  a  rea- 
sonable assurance  that  she  would  not  be  effectively 
interfered  with  in  the  pursuance  of  the  aggressive 
policies  embodied  in  her  Twenty-One  Demands  upon 
China,  just  as  it  had  been  that  same  alliance  which 
had  given  her  the  courage  in  1904  to  bring  her  contro- 
versies with  Russia  to  the  issue  of  war. 

It  is  not  to  be  doubted  that  Great  Britain  was  not 
in  sympathy  with  Japan's  acts  in  1915.  It  is  indeed 
reasonably  certain  that  she  was  not  given  notification 
by  Japan  that  her  Demands  were  to  be  made.  By 
acting  as  she  did  in  1915  Japan  clearly  violated 
two  articles  of  the  Alliance, — ^that  of  the  Preamble 
which  declared  that  one  of  its  purposes  was  to  pre- 
serve **  the  common  interests  of  all  the  Powers  in 
China  by  insuring  the  independence  and  integrity  of 

*The  well-known  British  publicist,  Robert  Young,  editor  of  the  Japan 
Chronicle,  in  an  article  contributed  to  the  Contemporary  Review  under 
the  title,  "  The  Anglo-Japanese  AlUance,"  argues  that  the  Alhance  gave  to 
Japan  an  excuse  rather  than  an  occasion  for  entering  the  war.  He  calls 
attention  to  the  fact  that  it  was  not  until  August  15,  eleven  days  after 
Great  Britain's  declaration  of  war  against  Germany,  that  Japan  presented 
to  Germany  demands  that  were  in  the  nature  of  an  ultimatum.  In  other 
words,  that  Japan  did  not  conceive  that  her  Alliance  operated  automatically 
and  necessarily  to  bring  her  into  the  war.  And,  furthermore,  that,  had 
Germany  acceded  to  the  terms  of  Japan's  ultimatum,  Japan  would  not 
have  felt  herself  obligated  to  come  into  the  war  at  all.  The  rejection  by 
Germany  of  this  ultimatum  brought  Japan  into  the  war  three  weeks  late, 
"  a  delay  which,"  says  Mr.  Young,  "  had  consequences  as  widely  dispersed 
as  the  bombardment  of  Madras,  the  sinking  of  a  new  Blue  Funnel  liner 
with  a  million  pounds'  worth  of  rubber  in  the  Arabian  Sea,  the  annihilation 
of  Sir  Reginald  Cradock's  squadron,  with  its  gallant  crews,  and  the  battle 
of  the  Falkland  Islands." 


RESULTS  347 

the  Chinese  Empire  and  the  principle  of  equal  oppor- 
tunities for  the  commerce  and  industry  of  all  nations 
in  China,"  and  Article  III  which  provided  that 
neither  of  the  Contracting  Parties  would,  without 
consulting  the  other,  enter  into  separate  arrange- 
ments with  another  Power  to  the  prejudice  of  the 
objects  described  in  the  Preamble  in  the  Agreement. 
The  fact  that  Great  Britain  did  not  at  the  time  pro- 
test against  these  acts  of  bad  faith  upon  the  part  of 
her  AUy  gives  point  to  the  observation  which  students 
of  international  relations  have  often  made  that  the 
existence  of  an  alliance  between  two  Powers,  so  far 
from  giving  to  the  one  a  means  or  opportunity  to 
bring  pressure  to  bear  upon  the  other,  operates  more 
often  to  deter  the  one  from  expressing  that  disap- 
proval or  exerting  that  influence  for  deterrence  that 
it  otherwise  might  have  expressed  or  exerted.  The 
fact,  also,  that  the  American  Government  and  the 
American  people  were  anxious  that  the  Anglo- 
Japanese  Alliance  should  be  brought  to  end  gives 
additional  proof  as  to  the  effect  that  it  might  have 
upon  political  conditions  in  the  Far  East.  In  the 
debate  in  the  United  States  Senate,  at  the  time  of  the 
approval  by  that  body  of  the  Four  Power  Pact, 
Senator  Lodge  said:  **  The  chief  and  most  impor- 
tant point  in  the  treaty  is  the  termination  of  the 
Anglo- Japanese  Alliance.  That  was  the  main  object 
of  the  treaty.'*  Again,  he  declared:  *'  It  is  sufficient 
to  say  that  in  my  judgment  the  Anglo- Japanese  Alli- 
ance was  the  most  dangerous  element  in  our  relations 
with  the  Far  East  and  with  the  Pacific.  Wars  come 
from   suspicions   which   develop   into   hatreds   and 


348  CHINA  AT  THE  CONFERENCE 

hatreds  which  develop  into  wars.  The  Anglo-Japan- 
ese Alliance  caused  a  growing  feeling  of  suspicion  not 
only  in  the  United  States  but  in  Canada.  On  the 
other  hand  it  tended  to  give  a  background  to  Japan 
which  encouraged  the  war  spirit  and  large  prepara- 
tions both  by  land  and  sea  for  future  conflict.  It 
immobilized  England  and  prevented  the  exercise  of 
her  influence  in  the  East  for  the  cause  of  peace.'* 

That  this  peace  was  chiefly  threatened  by  the  known 
imperialistic  ambitions  of  Japan  no  one,  outside  of 
Japan,  has  attempted  seriously  to  deny.  That  Japan 
attached  great  importance  to  the  Alliance  is  equally 
well  known.  Count  Hayashi,  who  negotiated  the 
Alliance  in  its  first  form,  declared  in  his  Secret 
Memoirs:*  **  The  Anglo- Japanese  Alliance  is  the 
established  policy  of  Japan.  It  is  the  basis  of  the 
country's  foreign  policy."  And  Baron  Kato,  who 
signed  the  Alliance  in  its  final  form,  in  1911,  is  re- 
ported to  have  said : 

The  Anglo-Japanese  Alliance  is  revered  and  respected  in  Japan 
as  long  as  it  can  be  used  as  a  stepping  stone  in  China.  It  will  remain 
in  the  future,  as  in  the  past,  the  shaft  on  which  the  wheels  of 
Japanese  diplomacy  revolve. 

It  is  true  that,  in  1916,  the  Japanese  press,  which 
is  known  to  take  its  cue  in  such  matters  from  the 
Japanese  Government,  raised  a  concerted  and  vehe- 
ment outcry  against  the  Alliance,  but  this  was  at  a 
time  when  the  military  situation  in  the  world  War 
was  not  an  encouraging  one  so  far  as  Great  Britain 
was  concerned,  and  when,  moreover,  by  the  treaty 

'Edited  by  A.  M.  Pooley,  and  published  in  1915.    See  p.  207. 


RESULTS  349 

secretly  entered  into  in  July,  1916,  Japan  had  formed 
a  strong  military  alliance  with  Russia.* 

Siberia.  China  cannot  but  view  with  interest  and 
concern  the  future  policies  of  Japan  in  Eastern 
Siberia,  for  that  there  will  be  a  close  connection  be- 
tween these  policies  and  the  ones  which  she  may  be 
expected  to  pursue  in  Manchuria  and  Mongolia  there 
is  every  reason  to  believe.  It  will  therefore  be 
proper  to  give  a  summary  of  the  statements  that 
were  made  in  the  Conference  with  reference  to  this 
matter. 

In  the  statement  which  the  American  Delegation 
made  in  the  Conference  with  reference  to  the  Siberian 
situation,  attention  was  drawn  to  the  circiunstances 
and  conditions  under  which  the  allied  military  inter- 
vention in  Siberia  had  been  undertaken.  At  the  time 
this  intervention  was  decided  upon  it  was  stated  that 
this  would  be  solely  for  the  purpose  of  helping  the 
Czecho-Slovaks  to  consolidate  their  forces  and  get 
into  successful  cooperation  with  their  Slavic  kins- 
men ;  to  steady  any  efforts  at  self-government  or  self- 
defense  in  which  the  Russians  might  themselves  be 
willing  to  accept  assistance ;  and  to  guard  the  military 

*  Mr.  Robert  Young,  in  the  article  to  which  reference  has  earlier  been 
made,  says:  "There  can  be  little  doubt  that  the  instrument  waa  intended 
as  a  substitute  for  the  Anglo-Japanese  Alliance,  and  it  is  significant  that 
its  conclusion  was  coincident  with  the  press  campaign  against  the  existing 
agreement  with  Britain,  which  it  widely  declared  shackled  the  hands  of 
Japan  in  dealing  with  China." 

In  view  of  what  Japan  had  already  done  to  China  in  1915  while  the 
Alliance  was  in  force,  one  cannot  but  be  curious  to  know  what  further 
action  with  regard  to  China  Japanese  jingoists  desired  their  Government 
to  take. 


350  CHINA  AT  THE  CONFERENCE 

stores  at  Vladivostok.  *^  It  was  stated,"  said  Secre- 
tary Hughes  in  Ms  statement  to  the  Conference, 
**  that  the  American  Government  proposed  to  ask 
all  associated  in  this  course  of  action  to  unite  in 
assuring  the  people  of  Russia  in  the  most  public  and 
solemn  manner  that  none  of  the  Governments  uniting 
in  action  either  in  Siberia  or  in  Northern  Russia 
contemplated  any  interference  of  any  kind  with  the 
political  sovereignty  of  Russia,  any  intervention  in 
her  internal  affairs,  or  any  impairment  of  her  terri- 
torial integrity  either  now  or  thereafter,  but  that  each 
of  the  associated  Powers  had  the  single  object  of 
affording  such  aid  as  should  be  acceptable,  and  only 
such  aid  as  should  be  acceptable,  to  the  Russian 
people  in  their  endeavor  to  regain  control  of  their 
own  affairs,  their  own  territory,  and  their  own 
destiny.'* 

At  this  time,  also,  the  Japanese  Government  de- 
clared that  it  was  anxious  to  act  in  harmony  with  this 
understanding,  and  that  ^*  the  Japanese  Government 
remains  unshaken  in  their  constant  desire  to  promote 
relations  of  enduring  friendship  with  Russia  and 
the  Russian  people,  and  reaffirms  their  avowed  policy 
of  respecting  the  territorial  integrity  of  Russia  and 
of  abstaining  from  all  interference  in  her  internal 
policies.  They  further  declare  that,  upon  the  realiza- 
tion of  the  projects  above  indicated,  they  will  imme- 
diately withdraw  all  Japanese  troops  from  Russian 
territory,  and  will  leave  wholly  unimpaired  the 
sovereignty  of  Russia  in  all  its  phases  whether  politi- 
cal or  military.'* 

As  is  well  known  the  Powers  other  than  Japan 
withdrew  their  troops  from  Siberia  in  1920  because 


KESULTS  351 

they  considered  that  the  purposes  of  the  military 
intervention  had  been  achieved  so  far  as  it  was  pos- 
sible to  achieve  them  by  such  intervention,  but  that 
Japan  has  continued  to  retain  her  troops  in  consider- 
able numbers  in  that  coimtry.  Also  it  has  been 
known  that  although  the  original  understanding  of 
the  United  States  and  the  other  intervening  Powers 
with  Japan  had  been  that  she  would  send  no  more 
than  a  number  of  troops  approximately  equal  to  those 
sent  by  the  United  States,  she,  in  fact,  soon  sent  some 
eight  or  ten  times  that  nmnber.  Still  further  it  is 
known  that  Japan  has  taken  military  occupation  of 
the  northern  half  of  the  Island  of  Sakhalin,  in 
alleged  reprisal  of  what  she  has  termed  a  massacre 
of  her  nationals  by  the  Russians  at  Nikolaievsk. 

It  has  also  been  charged  that  the  Japanese  troops, 
acting  under  direction  of  the  Japanese  authorities, 
have  interfered  actively  in  the  factional  domestic 
affairs  of  Siberia;  that  Japanese  nationals  have 
secured  from  organizations  claiming  to  be  the  de  facto 
or  de  jure  governments  of  the  Siberian  peoples,  vari- 
ous and  valuable  economic  concessions,  and  that  it 
is  insisted  by  the  Japanese  Government  that  the 
validity  of  these  concessions  shall  be  recognized  and 
guaranteed  by  the  Russian  or  Siberian  authorities  as 
a  condition  precedent  to  the  withdrawal  of  Japanese 
troops  from  Eastern  Siberia. 

That  the  American  Government  was  not  at  all  satis- 
fied with  the  actions  of  Japan  was  shown  in  its  cor- 
respondence with  the  Japanese  Government.  Thus, 
in  the  statement  which  he  read  to  the  Conference,  the 
American  Government  Secretary  Hughes  said: 


352  CHINA  AT  THE  CONFERENCE 

It  must  be  frankly  avowed  that  this  correspondence  has  not  always 
disclosed  an  identity  of  views  between  the  two  Governments.  The 
United  States  has  not  been  unmindful  of  the  direct  exposure  of 
Japan  to  Bolshevism  in  Siberia,  and  the  special  problems  which 
the  conditions  existing  there  have  created  for  the  Japanese  Govern- 
ment ;  but  it  has  been  strongly  disposed  to  the  belief  that  the  public 
assurances,  given  by  the  two  Governments  at  the  inception  of  the 
joint  expedition,  nevertheless  required  the  complete  withdrawal  of 
Japanese  troops  from  all  Russian  territory — if  not  immediately  after 
the  departure  of  the  Czecho-Slovak  troops,  then  within  a  reasonable 
time. 

As  to  the  occupation  of  Sakhalin,  in  reprisal  for  the  massacre 
of  the  Japanese  at  Nikolaievsk,  the  United  States  was  not  unim- 
pressed by  the  serious  character  of  that  catastrophe;  but,  having 
in  mind  the  conditions  accepted  by  both  Governments  at  the  outset 
of  the  joint  expedition,  of  which  the  Nikolaievesk  must  be  considered 
an  incident,  it  has  regretted  that  Japan  should  deem  necessary  the 
occupation  of  Russian  territory  as  a  means  of  assuring  a  suitable 
adjustment  with  a  future  Russian  Government. 

Secretary  Hughes  then  read  to  the  Conference 
extracts  from  a  communication  of  his  Government  on 
May  31,  1921,  to  the  Japanese  Grovemment  in  which 
it  had  protested  against  the  longer  continuance  of 
Japanese  troops  in  Siberia,  and  which  had  contained 
the  following  statement : 

In  view  of  the  conviction  that  the  course  followed  by  the  Govern- 
ment of  Japan  brings  into  question  the  very  definite  understanding 
concluded  at  the  time  troops  were  sent  to  Siberia,  the  Government 
of  the  United  States  must  in  candor  explain  its  position  and  say 
to  the  Japanese  Government  that  the  Government  of  the  United 
States  can  neither  now  nor  hereafter  recognize  as  valid  any  claims  or 
titles  arising  out  of  the  present  occupation  and  control,  and  that  it 
cannot  acquiesce  in  any  action  taken  by  the  Government  of  Japan 
which  might  impair  existing  treaty  rights  or  the  political  or  terri- 
torial integrity  of  Russia. 


RESULTS  353 

Secretary  Hughes  concluded  his  statement  to  the 
Conference  with  a  reiteration  of  the  hope  of  his 
Government  that  Japan  would  find  it  possible  to 
carry  out  within  the  near  future  her  expressed  inten- 
tion of  terminating  finally  the  Siberian  expedition 
and  of  restoring  Sakhalin  to  the  Russian  people. 

In  the  formal  statement  which  he  made  in  explana- 
tion of  Japan's  retention  of  troops  in  Siberia,  and 
of  the  conditions  under  which  they  would  be  with- 
drawn, Baron  Shidehara  adverted  to  the  fact  that 
there  were  many  Japanese  nationals  in  Siberia  who 
had  lawfully  established  themselves  there  prior  to  the 
Bolshevik  uprising,  and  who  looked  to  Japanese 
troops  for  protection  of  their  lives  and  property. 
Also  that,  due  to  geographical  propinquity,  the  gen- 
eral situation  in  the  districts  around  Vladivostok  and 
Nikolsk  was  bound  to  affect  the  security  of  the 
Korean  frontier.  In  particular,  he  said,  it  was 
known  that  these  districts  had  long  been  the  base  of 
Korean  conspiracies  against  Japan,  and  that,  should 
the  Japanese  troops  be  withdrawn,  there  was  every 
likelihood  that,  at  the  first  favorable  opportimity, 
these  conspirators  would  penetrate  Korea  itself. 

"  It  should  be  made  clear,"  he  said,  "  that  no  part  of  the  maritime 
province  is  under  Japan's  military  occupation.  Japanese  troops 
are  still  stationed  in  the  southern  portion  of  that  province,  but 
they  have  not  set  up  any  civil  or  military  administration  to  displace 
local  authorities.  Their  activity  is  confined  to  measures  of  self- 
protection  against  the  menace  to  their  own  safety  and  to  the  safety 

of  their  country  and  nationals The  Japanese  Government 

is  anxious  to  see  an  orderly  and  stable  authority  speedily  reestab- 
24 


364  CHINA  AT  THE  CONFERENCE 

lished  in  the  Far  Eastern  possessions  of  Bussia.'  ....  The 
Japsmese  Government  are  now  seriously  considering  plans  which 
would  justify  them  in  carrying  out  their  decision  of  the  complete 
withdrawal  of  Japanese  troops  from  the  maritime  province  with 
reasonable  precaution  for  the  security  of  Japanese  residents  and  of 
the  Korean  frontiers  regions.  It  is  for  this  purpose  that  negotia- 
tions were  opened  some  time  ago  at  Dairen  between  the  Japanese 
representatives  and  the  agents  of  the  Chita  Government.  Those 
regulations  at  Dairen  are  in  no  way  intended  to  secure  for  Japan 
any  right  or  advantage  of  exclusive  nature.''  They  have  been  solely 
actuated  by  a  desire  to  adjust  some  of  the  more  pressing  questions 
with  which  Japan  is  confronted  in  relation  to  Siberia.  They  have 
essentially  in  view  the  conclusion  of  provisional  commercial  arrange- 
ments, the  removal  of  the  existing  menace  to  the  security  of  Japan 
and  to  the  lives  and  property  of  Japanese  residents  in  Eastern 
Siberia,  the  provision  of  guarantees  for  the  freedom  of  lawful  under- 
takings in  that  region,  and  the  prohibition  of  Bolshevik  propaganda 
over  the  Siberian  border.  Should  adequate  provisions  be  arranged 
on  the  line  indicated,  the  Japanese  Government  will  at  once  proceed 
to  the  complete  withdrawal  of  Japanese  troops  from  the  maritime 
province. 

These  conditions,  even  if  one  takes  them  at  their 
full  face  value,  show  how  far  Japan  has  departed 
from  the  original  conditions  upon  which  she  had 

*In  the  communication  of  May  31,  1921  from  the  American  to  the 
Japanese  Government,  extracts  from  which  Secretary  Hughes  read  to  the 
Conference,  the  American  Government  said  that,  in  ita  view,  the  continued 
occupation  by  the  Japanese  troops  of  the  strategic  centers  in  Eastern 
Siberia,  and  the  seizure  of  the  Russian  portion  of  Sakhalin  and  the  estab- 
lishment there  of  a  civil  administration  "  inevitably  lends  itself  to  mis- 
conception and  antagonism — tends  rather  to  increase  than  to  allay  the 
unrest  and  disorder  in  that  region." 

*  It  has,  however,  been  understood  that  Japan  has  insisted  that  the  Chita 
or  Far  Eastern  Republic  Government  should  recognize  as  valid  the 
numerous  economic  concessions  in  Siberia  which  the  Japanese  nationals  have 
obtained  from  one  or  the  other  political  organizations  that  have  from  time 
to  time  been  in  existence  in  Siberia. 


EESULTS  355 

agreed  with  the  American  and  other  Governments 
she  would  withdraw  her  troops. 

As  to  the  occupation  of  the  Russian  Province  of 
Sakhalin — that  is,  the  northern  part  of  the  Island  and 
certain  points  on  the  mainland  opposite  to  the  island 
— Baron  Shidehara  said  that  the  situation  was  a 
different  one  both  as  to  its  nature  and  origin.  These 
points  had  been  occupied  by  Japan  by  way  of  reprisal 
for  the  killing  of  her  nationals  at  Nikolaievsk,  and 
would  continue  to  be  occupied  until  there  was  estab- 
lished in  Russia  a  responsible  authority  with  which 
Japan  could  commimicate  in  order  to  obtain  due 
satisfaction. 

Secretary  Hughes,  in  his  statement  to  the  Confer- 
ence, said  that  he  imderstood  Japan's  assurances  to 
mean  that  she  did  not  seek  '*  through  her  military 
operation  in  Siberia,  to  impair  the  rights  of  the 
Russian  people  in  any  respect,  or  to  absorb  for  her 
own  use  the  Siberian  fisheries,  or  to  set  up  an  exclu- 
sive exploitation  either  of  the  resources  of  Sakhalin 
or  of  the  maritime  province.''  To  this  statement  the 
Japanese  Delegation  made  no  reply  by  way  of  either 
affirmation  or  denial  or  qualification. 

Has  a  Fundamental  Change  of  Policy  on  the  Part 
of  the  Powers  Been  Effected?  The  results  of  such  a 
Conference  as  the  Washington  cannot,  however,  be 
summed  up  in  a  series  of  specific  achievements. 
They  are  not  to  be  found  explicitly  stated  in  the 
agreements  or  formal  resolutions  which  are  signed  by 
the  participating  Powers,  for,  in  addition  to  these 
agreements  and  resolutions,  there  is  the  still  more  im- 
portant question  whether,  as  a  result  of  the  dis- 


356  CHINA  AT  THE  CONFERENCE 

cussions  that  have  been  had,  a  new  and  changed  spirit 
has  found  its  way  into  the  foreign  policies  that  are 
henceforth  to  be  pursued.  Monsieur  Briand,  in  the 
address  which  he  made  in  the  third  plenary  session  of 
the  Conference,  struck  a  note  to  which  all  those  who 
heard  him  responded  when  he  said:  **  It  is  not 
enough  to  reduce  armies  and  to  decrease  the  muni- 
tions of  war.  That  is  the  material  side  of  things. 
There  is  another  consideration  which  one  has  no  right 
to  overlook  when  facing  such  a  problem — a  considera- 
tion which  goes  to  the  heart  of  questions  vital  to  the 
welfare  of  a  nation.  A  nation  must  be  surrounded  by 
what  I  may  call  an  atmosphere  of  peace;  disarma- 
ment must  be  moral  as  well  as  material.'* 

Monsieur  Briand  was  speaking  in  defense  of  the 
continued  maintenance  by  his  country  of  her  con- 
siderable land  forces,  but  whether  or  not  one  is  con- 
vinced of  the  necessity,  under  existing  circumstances, 
of  the  large  armies  still  maintained  by  France,  the 
truthfulness  and  pertinency  of  the  statement  which 
had  been  quoted  cannot  be  denied.  If,  then,  we  para- 
phrase this  statement  and  apply  it  to  political 
conditions  in  the  Far  East  we  have  the  equally  true 
proposition  that  the  answer  to  the  question  whether 
the  Conference  achieved  the  primary  purpose  for 
which  it  was  convened  depends  largely  upon  the  other 
question  whether,  as  a  result  of  its  deliberations,  the 
Nations  with  Pacific  and  Far  Eastern  interests  have 
come  to  a  firm  intention  to  substitute  cooperation  for 
nationalistic  competition,  to  do  stricter  justice  to  the 
weaker  peoples  than  they  have  done  in  the  past,  and 
to  guide  themselves  by  the  avowed  spirit  as  well  as  by 


KESULTS  357 

the  strict  letter  of  the  agreements  which  they  have 
signed  and  by  the  various  declarations  which  their 
delegates  have  made  in  the  Conference  and  which  are 
incorporated  in  its  official  records.  Whether  or  not 
they  have  come  to  this  firm  intention  and  will  con- 
tinue to  hold  it,  only  future  events  can  reveal. 

The  Future.  What  the  future  is  to  bring  forth  will 
depend  in  large  measure  upon  the  answer  it  gives  to 
the  question  stated  in  the  preceding  paragraph.  If 
we  analyze  this  question  into  its  chief  parts  they  will 
be  found  to  be  the  following :  (1)  the  extent  to  which 
Japan,  in  reversal  of  its  former  policies,  will  be 
guided  and  controlled  by  a  strict  regard  for  the  spirit 
as  well  as  for  the  letter  of  its  international  engage- 
ments, and  will  sincerely  seek,  or,  at  least  avoid  the 
placing  of  obstacles  in  the  way  of,  the  welfare  of  its 
great  neighbors,  China  and  Russia;  (2)  the  extent  to 
which  Great  Britain  and  the  United  States  will  co- 
operate in  the  Far  East;  and  (3)  the  extent  to  which 
China  herself  will  exhibit  a  power  to  make  use  of  the 
opportimity  that  the  Powers  have  agreed  to  give  her 
to  establish  and  maintain  for  herself  a  strong  cen- 
tral government  and  to  create  efficiently  operated 
public  administrative  services. 

That  Japan's  economic  and  political  future  is 
bound  up  in  her  ability  to  import  increasing  amounts 
of  foodstuffs  and  raw  materials  for  her  manufactur- 
ing establishments  there  can  be  no  doubt.  It  appears 
to  be  now  evident  to  the  Japanese  themselves  that 
immigration  does  not  funaish  them  with  a  solution  to 
the  problem  presented  by  their  increasing  popula- 
tion : — their  emigrants  will  not  be  received  by  those 


358  CHINA  AT  THE  CONFERENCE 

countries  which  supply  the  conditions  under  which 
they  can  economically  flourish,  and  experience  has 
shown  that  they  cannot  successfully  compete  with  the 
natives  of  Asia  or  Polynesia.  Even  in  Korea,  where 
they  have  had  the  aid  of  their  own  government  and  of 
colonization  societies,  the  Japanese  have  shown  them- 
selves unable  to  supplant  the  Koreans. 

Unless,  then,  the  population  of  Japan  proper  ceases 
to  increase,  the  islands  will  have  to  continue  that 
process  of  industrialization  and  commercialization 
which  has  already  made  such  considerable  progress. 
This,  in  turn,  will  mean  that  increasing  amounts  of 
foodstuffs  and  raw  materials  for  manufacturing  will 
have  to  be  imported.  For  these,  as  the  Japanese 
Delegation  several  times  frankly  said  in  the  Confer- 
ence, Japan  will  look  especially  to  China,  and,  they 
might  have  added,  to  Eastern  Siberia.  Respect  for 
the  rights  of  these  countries  as  well  as  for  those  of 
the  other  Powers  and  for  her  own  covenants  will  re- 
quire that  Japan  should  take  her  chances  in  the  open 
competitive  market  in  order  to  obtain  these  necessi- 
ties for  her  national  economic  existence.  It  may  be 
safely  assumed,  however,  that  she  will  at  least  seek 
by  every  legitimate  means  possible  to  increase  her 
investments  in  China  and  especially  in  Manchuria 
and  Mongolia,  and  also  in  Eastern  Siberia,  in  order 
that  she  may  have  increased  assurance  of  obtaining 
the  supplies  her  peoples  and  industries  will  demand. 
It  is  also  to  be  expected  that  she  will  be  especially 
insistent  that  law  and  order  are  maintained  in  those 
regions  in  order  that  no  serious  impediments  may  be 
placed  in  the  way  of  the  production,  sale  and  ship- 
ment of  these  supplies. 


RESULTS  359 

This  is  as  far  as  Japan,  in  this  respect,  can  legiti- 
mately go,  for  she  cannot  validly  appeal  to  her  own 
economic  necessities  in  order  to  justify  her  in  taking 
from  another  friendly  country  what  she  conceives 
herself  to  need — that  would  be  to  take  a  leaf  out  of 
the  book  of  Prussian  political  philosophy — and,  fur- 
thermore, it  is  clear  that,  so  far  as  Manchuria  and 
Mongolia  are  concerned,  China  already  needs  them 
as  outlets  for  her  own  rapidly  expanding  populations, 
and  soon  will  need  their  mineral  resources  for  her 
own  developing  industries. 

As  regards  the  second  factor  that  is  likely  to  de- 
termine the  future  in  the  Far  East — the  extent  to 
which  Great  Britain  and  the  United  States  will  co- 
operate— it  need  only  be  said  that  harmonious  action 
upon  the  part  of  these  the  two  most  powerful  States 
of  the  world,  must  necessarily  be  efficient  to  secure 
the  results  aimed  at,  and  that  the  present  indications 
are  that  this  entente  exists.  This,  of  course,  does 
not  mean  that  any  secret  or  formulated  understand- 
ing has  been  arrived  at  between  these  two  Powers, 
but  that  their  governments  see  clearly  that  it  is  to 
their  mutual  advantage  as  well  as  to  the  advantage 
of  the  other  Powers,  including  China  and  even  Japan, 
that  peace  shall  be  preserved  in  the  Far  East;  that 
the  Open  Door  doctrine  shall  be  observed;  and  that 
the  sovereignty  and  administrative  integrity  of  China 
shall  be  respected.  Those  who  watched  carefully  the 
proceedings  of  the  Washington  Conference  and  were 
in  a  position  to  judge  intelligently  the  forces  operat- 
ing to  bring  about  the  results  that  were  reached, 
know  how  close  was  the  cooperation  between  Great 


360  CHINA  AT  THE  CONFERENCE 

Britain  and  the  United  States,  and  how  nearly  eye 
to  eye  these  two  Powers  now  stand  in  their  Far 
Eastern  policies.  The  abrogation  of  the  Anglo- 
Japanese  Alliance  is,  of  course,  of  especial  signifi- 
cance in  this  respect,  since  it  leaves  Great  Britain 
free  to  pursue  without  embarrassment,  this  Anglo- 
American  community  of  opinion  and  interest. 

The  last  factor  in  the  Far  Eastern  political  future 
is  China  herself.  After  all,  upon  her  will  rest  the 
greatest  responsibility  for  what  the  next  few  years  Ij 

are  to  bring  forth  in  her  part  of  the  world.  She  is 
now  to  have  the  opportunity  to  give  substance  to  her 
claim  to  sovereignty  and  reality  to  her  administra- 
tive integrity.  A  State  that  claims  that  its  sover- 
eignty and  independence  shall  be  scrupulously  re- 
spected by  other  States  gives  the  implied  assurance 
that  it  is  able  to  exercise  a  reasonable  amoimt  of 
effective  political  control  over  the  territories  and 
peoples  which  it  claims  as  its  own.  China  cannot, 
therefore,  ask  of  these  States  that  they  exercise  a 
forbearance  towards  herself  for  a  longer  period  than 
is  reasonably  necessary  for  her  to  place  her  own 
household  in  order,  and  thus  to  be  in  a  position  not 
only  to  fulfill  her  own  international  obligations  but 
to  promote  the  welfare  of  her  own  peoples.  At  any 
rate  it  is  necessary  that  she  should  make  steady  even 
if  only  slow  political  progress.  Thus  there  now  rests 
upon  China  the  immediate  duty  of  reducing  her  mili- 
tary forces  to  a  reasonable  niunber  and  of  bringing 
them  into  due  subordination  to  the  civil  authorities ; 
of  creating  and  operating  efficient  administrative  ser- 
vices ;  of  purging  her  politics  of  corruption ;  and,  in 


RESULTS  361 

general,  of  establishing  a  stable  Central  Government 
which  will  command  the  respect  and  obedience  of  all 
of  her  millions  of  people.  Especially  must  her  patri- 
otic leaders  maintain  unremitting  vigilance  that  no 
commitments  are  made  that  will  impose  new  re- 
straints upon  her  freedom  of  action  or  which  will 
sacrifice  economic  rights  which  should  be  retained 
for  the  exclusive  benefit  of  her  own  citizens.  Against 
the  possibility  of  such  improvident  or  disloyal  action 
upon  the  part  of  her  own  Government  or  officials,  no 
Conference  of  Powers  could  protect  her  except  by 
denying  to  her  the  exercise  of  treaty  and  other  rights 
which  belong  to  her  as  a  sovereign  State  and  which, 
of  course  she  would  not  be  willing  to  surrender. 

It  is  the  writer  *s  opinion  that,  by  their  actions  in 
the  Washington  Conference,  the  Western  Powers 
have  shown  a  real  disposition  to  release  China  from 
the  limitations  upon  her  administrative  autonomy  as 
rapidly  as  existing  conditions  in  China  fairly  war- 
rant them  in  doing  so.  They  are  now  in  a  frame  of 
mind,  he  believes,  that  will  lead  them  to  grant  further 
relief  to  China  if  China  can  exhibit  to  them  the  pic- 
ture of  a  united  people  with  a  stable  and  efficient 
national  Government. 

Aside,  however,  from  what  she  is  able  to  do  for 
herself,  China  needs  to  be  especially  anxious  as  to 
the  course  of  Japanese  influence  in  Manchuria  and 
Mongolia.  Japan,  it  is  clear  from  the  unambiguous 
statements  made  in  the  Conference,  will  be  loath  to 
surrender  her  lease  of  the  Liaotung  Peninsula  and 
her  railways  and  other  rights  in  Manchuria.  But, 
even  as  to  these,  the  query  may  be  raised  whether. 


362  CHINA  AT  THE  CONFERENCE 

through  the  *^  good  offices  "  of  the  other  Powers  some 
satisfactory  situation  between  China  and  Japan  may 
not  be  brought  about.  So  conspicuously  successful 
were  the  Shantung  Conversations  in  clearing  up  that 
most  disturbing  controversy  between  the  two  coun- 
tries, one  is  encouraged  to  ask  whether  similar  good 
results  might  not  be  secured  with  reference  to  the 
remaining  provisions  of  the  Treaties  to  Agreements 
of  1915,  if  Great  Britain  and  the  United  States  would 
again  extend  their  **  good  offices  '^  for  the  purpose, 
and  the  Governments  of  China  and  Japan  be  per- 
suaded to  accept  and  employ  them.  It  is  scarcely  con- 
ceivable that  China  would  refuse  such  an  offer,  and  it 
is  likely  that  Japan  would  do  the  same  if  she  can 
secure  in  her  own  country  a  due  control  of  the  mili- 
taristic forces  which,  unhappily  for  her  and  for  her 
neighbors,  have,  during  recent  years,  exercised  such 
predominant  control.  And  this  suggests  what  proba- 
bly should  have  been  included  as  a  fourth  factor  in 
the  Far  Eastern  situation, — the  course  of  constitu- 
tional and  political  development  in  Japan.  Is  she 
to  obtain  a  type  of  government  and  to  apply  princi- 
ples of  political  right  which  wiU  bring  her  into  true 
fellowship  with  the  other  enlightened  nations  of  the 
world,  or  is  she  to  remain  under  the  domination  of 
her  bureaucrats  and  militarists  ? 


APPENDICES 

APPENDIX  I:    TREATIES 

A  Treaty  Between  the  TJnited  States  of  America,  the  British  Empire, 
France,  and  Japan,  Signed  December  13,  1921,  Eelating  to  Their 
Insular  Possessions  and  Insular  Dominions  in  the  Pacific  Ocean 

The  United  States  of  America,  the  British  Empire,  France  and 
Japan, 

With  a  view  to  the  preservation  of  the  general  peace  and  the 
maintenance  of  their  rights  in  relation  to  their  insular  possessions 
and  insular  dominions  in  the  region  of  the  Pacific  Ocean, 

Have  determined  to  conclude  a  Treaty  to  this  effect  and  have 
appointed  as  their  Plenipotentiaries : 

The  President  of  the  United  States  of  America: 
Charles  Evans  Hughes, 
Henry  Cabot  Lodge, 
Oscar  W.  Underwood  and 
Elihu  Eoot, 

citizens  of  the  United  States ; 
His  Majesty  the  King  of  the  United  Kingdom  of  Great  Britain 
and  Ireland  and  of  the  British  Dominions  beyond  the  Seas,  Em- 
peror of  India : 

The  Right  Honourable  Arthur  James  Balfour,  0.  M.,  M.  P., 

Lord  President  of  His  Privy  Council ; 
The  Right  Honourable  Baron  Lee  of  Fareham,  G.  B.   E., 

K.  C.  B.,  First  Lord  of  His  Admiralty ; 
The    Right    Honourable    Sir    Auckland    Campbell    Geddes, 
K.  C.  B,,  His  Ambassador  Extraordinary  and  Plenipoten- 
tiary to  the  United  States  of  America; 
And 
for  the  Dominion  of  Canada: 

The  Right   Honourable   Robert   Laird   Borden,   G.  C.  M.  G., 
K.  C; 

363 


364  CHINA  AT  THE  CONFERENCE 

for  the  Commonwealth  of  Australia: 

The  Honourable  George  Foster  Pearce,  Minister  of  Defence; 
for  the  Dominion  of  New  Zealand : 

Sir  John  William  Salmond,  K.  C,  Judge  of  the  Supreme  Court 
of  New  Zealand ; 
for  the  Union  of  South  Africa : 

The  Eight  Honourable  Arthur  James  Balfour,  0.  M.,  M.  P. ; 
for  India: 

The  Right  Honourable  Valingman  Sankaranarayana  Srinivasa 
Sastri,  Member  of  the  Indian  Council  of  State; 
The  President  of  the  French  Republic : 

Mr.  Rene  Viviani,  Deputy,  Former  President  of  the  Council 

of  Ministers; 
Mr.  Albert  Sarraut,  Deputy,  Minister  of  the  Colonies; 
Mr,  Jules  J.  Jusserand,  Ambassador  Extraordinary  and  Pleni- 
potentiary to  the  United  States  of  America,  Grand  Cross  of 
the  National  Order  of  the  Legion  of  Honour ; 
His  Majesty  the  Emperor  of  Japan : 

Baron  Tomosaburo  Kato,  Minister  for  the  Navy,  Junii,  a  mem- 
ber of  the  First  Class  of  the  Imperial  Order  of  the  Grand 
Cordon  of  the  Rising  Sun  with  the  Paulownia  Flower; 
Baron  Kijuro  Shidehara,  His  Ambassador  Extraordinary  and 
Plenipotentiary  at  Washington,  Joshii,  a  member  of  the  First 
Class  of  the  Imperial  Order  of  the  Rising  Sun ; 
Prince  lyesato  Tokugawa,  Junii.  a  member  of  the  First  Class 

of  the  Imperial  Order  of  the  Rising  Sun ; 
Mr.  Masanao  Hanihara,  Vice-Minister  for  Foreign  Affairs, 
Jushii,  a  member  of  the  Second  Class  of  the  Imperial  Order 
of  the  Rising  Sun ; 
Who,  having  communicated  their  Full  Powers,  found  in  good  and 
due  form,  have  agreed  as  follows : 


The  High  Contracting  Parties  agree  as  between  themselves  to 
respect  their  rights  in  relation  to  their  insular  possessions  and  in- 
sular dominions  in  the  region  of  the  Pacific  Ocean. 


APPENDICES  365 

If  there  should  develop  between  any  of  the  High  Contracting 
Parties  a  controversy  arising  out  of  any  Pacific  question  and  involv- 
ing their  said  rights  which  is  not  satisfactorily  settled  by  diplomacy 
and  is  likely  to  affect  the  harmonious  accord  now  happily  subsisting 
between  them,  they  shall  invite  the  other  High  Contracting  Parties 
to  a  joint  conference  to  which  the  whole  subject  will  be  referred 
for  consideration  and  adjustment. 

II 

If  the  said  rights  are  threatened  by  the  aggressive  action  of  any 
other  Power,  the  High  Contracting  Parties  shall  communicate  with 
one  another  fully  and  frankly  in  order  to  arrive  at  an  understanding 
as  to  the  most  efl&cient  measures  to  be  taken,  jointly  or  separately,  to 
meet  the  exigencies  of  the  particular  situation. 

Ill 

This  Treaty  shall  remain  in  force  for  ten  years  from  the  time 
it  shall  take  effect,  and  after  the  expiration  of  said  period  it  shall 
continue  to  be  in  force  subject  to  the  right  of  any  of  the  High 
Contracting  Parties  to  terminate  it  upon  twelve  months'  notice. 

IV 

This  Treaty  shall  be  ratified  as  soon  as  possible  in  accordance 
with  the  constitutional  methods  of  the  High  Contracting  Parties 
and  shall  take  effect  on  the  deposit  of  ratifications,  which  shall  take 
place  at  Washington,  and  thereupon  the  agreement  between  Great 
Britain  and  Japan,  which  was  concluded  at  London  on  July  13, 
1911,  shall  terminate.  The  Government  of  the  United  States  will 
transmit  to  all  the  Signatory  Powers  a  certified  copy  of  the  proces- 
verbal  of  the  deposit  of  ratifications. 

The  present  Treaty,  in  French  and  in  English,  shall  remain 
deposited  in  the  Archives  of  the  Government  of  the  United  States, 
and  duly  certified  copies  thereof  will  be  transmitted  by  that  Govern- 
ment to  each  of  the  Signatory  Powers. 

In  faith  whereof  the  above  named  Plenipotentiaries  have  signed 
the  present  Treaty. 


366 


CHINA  AT  THE  CONFERENCE 


Done  at  the  City  of  Washington,  the  thirteenth  day  of  December, 
One  Thousand  Nine  Hundred  and  Twenty-One. 


[L.8.] 

[L.  8.] 

[L.S.] 

[L.8.] 

[L.8.] 

[L.8.] 

[L.S.] 

[L.8.] 

[L.S.] 

[L.8.] 

[L.S.] 

[L.S.] 

Charles  Evans  Hughes 

[L. 

s.] 

Henry  Cabot  Lodge 

[L.S.] 

Oscar  W.  Underwood 

[L. 

s.] 

Elihu  Eoot 

[L. 

s.] 

Arthur  James  Balfour 

[L. 

s.] 

Lee  of  Fareham 

[L. 

s.] 

A.  C.  Geddes 

[L- 

8.] 

R.  L.  Borden 

G.  F.  Pearce 

John  W.  Salmond 

Arthur  James  Balfour 

V.  S.  Srinivasa  Sastri 

Rene  Viviani 

A.  Sarraut 

JUSSERAND 

T.  Kato 

K.  S'hidehara. 

TOKUGAWA  IyESATO 

M.  Hanthara 

Declaration  Accompanying  the  Above  Four-Power  Treaty 

In  signing  the  Treaty  this  day  between  The  United  States  of 
America,  The  British  Empire,  France  and  Japan,  it  is  declared  to  be 
the  understanding  and  intent  of  the  Signatory  Powers : 

1.  That  the  Treaty  shall  apply  to  the  Mandated  Islands  in  the 
Pacific  Ocean;  provided,  however,  that  the  making  of  the  Treaty 
shall  not  be  deemed  to  be  an  assent  on  the  part  of  The  United  States 
of  America  to  the  mandates  and  shall  not  preclude  agreements  be- 
tween The  United  States  of  America  and  the  Mandatory  Powers 
respectively  in  relation  to  the  mandated  islands. 

2.  That  the  controversies  to  which  the  second  paragraph  of  Article 
I  refers  shall  not  be  taken  to  embrace  questions  which  according  to 


APPENDICES  367 

principles  of  international  law  lie  exclusively  within  the  domestic 
jurisdiction  of  the  respective  Powers, 
Washington,  D.  C,  December  13,  1921. 

Charles  Evans  Hughes 

Henry  Cabot  Lodge 

OscAE  W.  Underwood 

Elihu  Eoot 

A.  M.  James  Balfoub 

Lee  of  Fareham 

A.  C.  Geddes 

E.  L.  Borden 

G.  F.  Pearce 

John  W.  Salmond 

Arthur  James  Balfoub 

V.  S.  Srinivasa  Sastri 

Rene  Vivlani 

A  S'arraut 

Jusserand 

T.  Kato 

K.  S'hidehara 

TOKUGAWA  IyBSATO 

M.  Hanihara 

A  Treaty  Between  the  Same  Four  Powers,  Supplementary  to  the 
Above,  Sigrned  February  6,  1922 

The  United  States  of  America,  the  British  Empire,  France  and 
Japan  have,  through  their  respective  Plenipotentiaries,  agreed  upon 
the  following  stipulations  supplementary  to  the  Quadruple  Treaty 
signed  at  Washington  on  December  13,  1921 : 

The  term  "  insular  possessions  and  insular  dominions  "  used  in 
the  aforesaid  Treaty  shall,  in  its  application  to  Japan,  include  only 
Karafuto  (or  the  Southern  portion  of  the  island  of  Sakhalin), 
Formosa  and  the  Pescadores,  and  the  islands  under  the  mandate  of 
Japan. 

The  present  agreement  shall  have  the  same  force  and  effect  as 
the  said  Treaty  to  which  it  is  supplementary. 


368 


CHINA  AT  THE  CONFERENCE 


The  provisions  of  Article  IV  of  the  aforesaid  Treaty  of  December 
13,  1921,  relating  to  ratification  shall  be  applicable  to  the  present 
Agreement,  which  in  French  and  English  shall  remain  deposited 
in  the  Archives  of  the  Government  of  the  United  States,  and  duly 
certified  copies  thereof  shall  be  transmitted  by  that  Government  to 
each  of  the  other  Contracting  Powers. 

In  faith  whereof  the  respective  Plenipotentiaries  have  signed  the 
present  Agreement. 

Done  at  the  City  of  Washington,  the  sixth  day  of  February,  One 
Thousand  Nine  Hundred  and  Twenty-two. 


Charles  Evans  Hughes 

[l.s.1 

Heney  Cabot  Lodge 

[L.8.] 

Oscar  W.  Underwood 

[L.8.] 

[l.  8.' 

Elihu  Root 

[L.S." 

1     Arthur  James  Balfour 

[l.  S.^ 

1     Lee  of  Faeeiiam 

[l.  S.' 

A.  C.  Geddes 

[l.  S.' 

1     R.  L.  Borden 

[l.  8.' 

G.  F.  Pearce 

[l.  8.' 

John  W.  Salmond 

[l.  &.' 

Arthur  James  Balfour 

[l.  S.^ 

V.  S.  S'rinivasa  Sastri 

A.  Sarraut 

[L.S.] 

JUSSERAND 

[L.8.] 

T.  Kato 

[L.S.J 

K.  Shidehaea 

[L.S.] 

M.  Hanihaea 

[L.8.] 

A  Treaty  Between  All  Nine  Powers  Relating  to  Principles  and 
Policies  to  be  Followed  in  Matters  Concerning  China 

The  United  States  of  America,  Belgium,  the  British  Empire, 
China,  France,  Italy,  Japan,  the  Netherlands  and  Portugal: 

Desiring  to  adopt  a  policy  designed  to  stabilize  conditions  in 
the  Far  East,  to  safeguard  the  rights  and  interests  of  Chiua,  and  to 
promote  intercourse  between  China  and  the  other  Powers  upon  the 
basis  of  equality  of  opportunity ; 


APPENDICES  369 

Have  resolved  to  conclude  a  treaty  for  that  purpose  and  to  that 
end  have  appointed  as  their  respective  Plenipotentiaries : 

The  President  of  the  United  States  of  America : 
Charles  Evans  Hughes, 
Henry  Cabot  Lodge, 
Oscar  W.  Underwood, 
Elihu  Root, 

citizens  of  the  United  States ; 
His  Majesty  the  King  of  the  Belgians : 

Baron  de  Cartier  de  Marchienne,  Commander  of  the  Order  of 

Leopold  and  of  the  Order  of  the  Crown,  His  Ambassador 

Extraordinary  and  Plenipotentiary  at  Washington ; 

His  Majesty  the  King  of  the  United  Kingdom  of  Great  Britain  and 

Ireland  and  of  the  British  Dominions  beyond  the  Seas,  Emperor 

of  India: 

The  Right  Honourable  Arthur  James  Balfour,  0.  M.,  M.  P., 

Lord  President  of  His  Privy  Council; 
The  Right  Honourable  Baron  Lee  of  Fareham,   G.  B.  E., 

K.  C.  B.,  First  Lord  of  His  Admiralty ; 
The    Right    Honourable    Sir    Auckland    Campbell    Geddes, 
K.  C.  B.,  His  Ambassador  Extraordinary  and  Plenipotentiary 
to  the  United  States  of  America; 
And 
for  the  Dominion  of  Canada : 
The  Right  Honourable  Sir  Robert  Laird  Borden,  G.  C.  M.  G., 
K.  C; 
for  the  Commonwealth  of  Australia : 

Senator  the  Right  Honourable  George  Foster  Pearce,  Minister 
for  Home  and  Territories ; 
for  the  Dominion  of  New  Zealand : 
The  Honourable  Sir  John  William  Salmond,  K.  C,  Judge  of  the 
Supreme  Court  of  New  Zealand ; 
for  the  Union  of  South  Africa : 

The  Right  Honourable  Arthur  James  Balfour,0.  M.,  M.  P. ; 
for  India : 

The  Right  Honourable  Valingman  Sankaranarayana  Srinivasa 

Sastri,  Member  of  the  Indian  Council  of  State ; 
25 


370  CHINA  AT  THE  CONFERENCE 

The  President  of  the  Republic  of  China : 

Mr.  Sao-Ke  Alfred  Sze,  Envoy  Extraordinary  and  Minister 
Plenipotentiary  at  Washington ; 

Mr.  V.  K,  Wellington  Koo,  Envoy  Extraordinary  and  Minister 
Plenipotentiary  at  London; 

Mr.  Chung-Hui  Wang,  former  Minister  of  Justice ; 
The  President  of  the  French  Republic : 

Mr.  Albert  Sarraut,  Deputy,  Minister  of  the  Colonies ; 

Mr.  Jules  J.  Jusserand,  Ambassador  Extraordinary  and  Pleni- 
potentiary to  the  United  States  of  America,  Grand  Cross  of 
the  National  Order  of  the  Legion  of  Honour ; 
His  Majesty  the  King  of  Italy : 

The  Honourable  Carlo  Schanzer,  Senator  of  the  Kingdom ; 

The  Honourable  Vittorio  Rolandi  Ricci,  Senator  of  the  King- 
dom, His  Ambassador  Extraordinary  and  Plenipotentiar}'  at 
Washington ; 
The  Honourable  Luigi  Albertini,  Senator  of  the  Kingdom ; 
His  Majesty  the  Emperor  of  Japan: 

Baron  Tomosaburo  Kato,  Minister  for  the  Navy,  Junii,  a 
member  of  the  First  Class  of  the  Imperial  Order  of  the  Grand 
Cordon  of  the  Rising  Sun  with  the  Paulownia  Flower ; 

Baron  Kijuro  Shidehara,  His  Ambassador  Extraordinary  and 
Plenipotentiary  at  Washington,  Joshii,  a  member  of  the 
First  Class  of  the  Imperial  Order  of  the  Rising  Sun ; 

Mr.  Masanao  Hanihara,  Vice-Minister  for  Foreign  Affairs, 
Jushii,  a  member  of  the  Second  Class  of  the  Imperial  Order 
of  the  Rising  Sim ; 
Her  Majesty  the  Queen  of  The  Netherlands : 

Jonkheer  Frans  Beelaerts  van  Blokland,  Her  Envoy  Extraor- 
dinary and  Minister  Plenipotentiary; 

Jonkheer  Willem  Hendrik  de  Beaufort,  Minister  Plenipoten- 
tiary, Charg6  d'  Affaires  at  Washington ; 
The  President  of  the  Portuguese  Republic : 

Mr.  Jos6  Francisco  de  Horta  Machado  da  Franca,  Viscount 
d'  Alte,  Envoy  Extraordinary  and  Minister  Plenipotentiary 
at  Washington ; 


APPENDICES  371 

Mr.  Ernesto  Julio  de  Carvalho  e  Vasconcellos,  Captain  of  the 
Portuguese  Navy,  Technical  Director  of  the  Colonial  OflBce. 
Who,  having  communicated  to  each  other  their  full  powers,  found 
to  be  in  good  and  due  form,  have  agreed  as  follows : 

Article  i 

The  Contracting  Powers,  other  than  China,  agree : 

(1)  To  respect  the  sovereignty,  the  independence,  and  the  terri- 
torial and  administrative  integrity  of  China; 

(2)  To  provide  the  fullest  and  most  unembarrassed  opportunity 
to  China  to  develop  and  maintain  for  herself  an  effective  and  stable 
government ; 

(3)  To  use  their  influence  for  the  purpose  of  effectually  estab- 
lishing and  maintaining  the  principle  of  equal  opportunity  for  the 
commerce  and  industry  of  all  nations  throughout  the  territory  of 
China ; 

(4)  To  refrain  from  taking  advantage  of  conditions  in  China 
in  order  to  seek  special  rights  or  privileges  which  would  abridge 
the  rights  of  subjects  or  citizens  of  friendly  States  and  from  counte- 
nancing action  inimical  to  the  security  of  such  States. 

ARTICLE  n 

The  Contracting  Powers  agree  not  to  enter  into  any  treaty,  agree- 
ment, arrangement,  or  understanding,  either  with  one  another,  or, 
individually  or  collectively,  with  any  Power  or  Powers,  which  would 
infringe  or  impair  the  principles  stated  in  Article  I. 

ARTICLE  in 

With  a  view  to  applying  more  effectually  the  principles  of  the 
Open  Door  or  equality  of  opportunity  in  China  for  the  trade  and 
industry  of  all  nations,  the  Contracting  Powers,  other  than  China, 
agree  that  they  will  not  seek,  nor  support  their  respective  nationals 
in  seeking 

(a)  any  arrangement  which  might  purport  to  establish  in  favour 
of  their  interests  any  general  superiority  of  rights  with  respect  to 
commercial  or  economic  development  in  any  designated  region  of 
China; 


372  CHINA  AT  THE  CONFERENCE 

(b)  any  such  monoply  or  preference  as  wonld  deprive  the  na- 
tionals of  any  other  Power  of  the  right  of  undertaking  any  legitimate 
trade  or  industry  in  China,  or  of  participating  with  the  Chinese  Gov- 
ernment, or  with  any  local  authority,  in  any  category  of  public  enter- 
prise, or  which  by  reason  of  its  scope,  duration  or  geographical 
extent  is  calculated  to  frustrate  the  practical  application  of  the 
principle  of  equal  opportunity. 

It  is  understood  that  the  foregoing  stipulations  of  this  Article 
are  not  to  be  so  construed  as  to  prohibit  the  acquisition  of  such 
properties  or  rights  as  may  be  necessary  to  the  conduct  of  a  particu- 
lar commercial,  industrial,  or  financial  undertaking  or  to  the  en- 
couragement of  invention  and  research. 

China  undertakes  to  be  guided  by  the  principles  stated  in  the 
foregoing  stipulations  of  this  Article  in  dealing  with  applications 
for  economic  rights  and  privileges  from  Governments  and  nationals 
of  all  foreign  countries,  whether  parties  to  the  present  Treaty  or  not. 

ARTICLE  rv 

The  Contracting  Powers  agree  not  to  support  any  agreements  by 
their  respective  nationals  with  each  other  designed  to  create  Spheres 
of  Influence  or  to  provide  for  the  enjoyment  of  mutually  exclusive 
opportunities  in  designated  parts  of  Chinese  territory. 

AETIOLB  V 

China  agrees  that,  throughout  the  whole  of  the  railways  in  China, 
she  will  not  exercise  or  permit  unfair  discrimination  of  any  kind. 
In  particular  there  shall  be  no  discrimination  whatever,  direct  or 
indirect,  in  respect  of  charges  or  of  facilities  on  the  ground  of  the 
nationality  of  passengers  or  the  countries  from  which  or  to  which 
they  are  proceeding,  or  the  origin  or  ovraership  of  goods  or  the 
country  from  which  or  to  which  they  are  consigned,  or  the  nationality 
or  ownership  of  the  ship  or  other  means  of  conveying  such  passengers 
or  goods  before  or  after  their  transport  on  the  Chinese  Railways. 

The  Contracting  Powers,  other  than  China,  assume  a  correspond- 
ing obligation  in  respect  of  any  of  the  aforesaid  railways  over  which 
they  or  their  nationals  are  in  a  position  to  exercise  any  control 
in  virtue  of  any  concession,  special  agreement  or  otherwise. 


APPENDICES  373 

ABTICLE  VI 

The  Contracting  Powers,  other  than  China,  agree  fully  to  respect 
China's  rights  as  a  neutrtil  in  time  of  war  to  which  China  is  not 
a  party;  and  China  declares  that  when  she  is  a  neutral  she  will 
observe  the  obligations  of  neutrality. 

ARTICLE  vn 

The  Contracting  Powers  agree  that,  whenever  a  situation  arises 
which  in  the  opinion  of  any  one  of  them  involves  the  application  of 
the  stipulations  of  the  present  Treaty,  and  renders  desirable  discus- 
sion of  such  application,  there  shall  be  full  and  frank  communication 
between  the  Contracting  Powers  concerned. 

ABTIOLE  VIII 

Powers  not  signatory  to  the  present  Treaty,  which  have  Govern- 
ments recognized  by  the  Signatory  Powers  and  which  have  treaty 
relations  with  China,  shall  be  invited  to  adhere  to  the  present  Treaty. 
To  this  end  the  Government  of  the  United  States  will  make  the 
necessary  communications  to  nonsignatory  Powers  and  will  inform 
the  Contracting  Powers  of  the  replies  received.  Adherence  by  any 
Power  shall  become  effective  on  receipt  of  notice  thereof  by  the 
Government  of  the  United  States. 

ABTICLE  IX 

The  present  Treaty  shall  be  ratified  by  the  Contracting  Powers 
in  accordance  with  their  respective  constitutional  methods  and  shall 
take  effect  on  the  date  of  the  deposit  of  all  the  ratifications,  which 
shall  take  place  at  Washington  as  soon  as  possible.  The  Govern- 
ment of  the  United  States  will  transmit  to  the  other  Contracting 
Powers  a  certified  copy  of  the  proces-verbal  of  the  deposit  of  ratifica- 
tions. 

The  present  Treaty,  of  which  the  French  and  English  texts  are 
both  authentic,  shall  remain  deposited  in  the  archives  of  the  Gov- 
ernment of  the  United  States,  and  duly  certified  copies  thereof  shall 
be  transmitted  by  that  Government  to  the  other  Contracting  Powers. 

In  faith  whereof  the  above-named  Plenipotentiaries  have  signed 
the  present  Treaty. 


374 


CHINA  AT  THE  CONFERENCE 


Done  at  the  City  of  Washington,  the  Sixth  day  of  February,  One 
Thousand  Nine  Hundred  and  Twenty-Two. 


[L. 

8.] 

[L. 

8.] 

[L. 

8.] 

[L.8.] 

[L. 

8.] 

[L. 

8.] 

[L.8.] 

[L. 

8.] 

Charles  Evans  Hughes 

[l.  8.] 

Heney  Cabot  Lodge 

[l.  8.] 

OsCAE  W.  Undeewood 

[l.  8.] 

Elihu  Root 

[l.  s.] 

Baeon  de  Caetier  de  Marchibnne 

[l.  s.] 

Aethue  James  Bat.fode 

[l.  s.] 

Lee  of  Faeeham 

[l.  s.] 

A.  C.  Geddes 

[l.  s.] 

B.  L.  Borden 

[L.  8.] 

G.  F.  Pearce 

[l,  s.] 

John  W.  Salmond 

[L.  8.] 

Arthur  James  Balfour 

[l.  8.] 

V.  S".  Srinivasa  Sastri 

[l.  8.] 

Sao-Ke  Alfred  Sze 

V.  K.  Wellington  Koo 

Chung-Hui  Wang 

A.  Sarraut 

JUSSERAND 

Carlo  Schanzer 

V.  ROLANDI  Ricci 

LuiGi  Albertini 

T.  Kato 

[L.S.] 

K.  Shidehara 

[L.S.] 

M.  Hanihara 

[L.8.] 

Beelaerts  van  Blokland 

[L.S.] 

W.  DE  Beaufort 

[L.S.] 

Alte 

[L.S.] 

Ernesto  de  Vasconcellos 

[L.S.] 

A  Treaty  Between  the  Nine  Powers  Relating  to  Chinese 
Customs  Tariff 

The  United  States  of  America,  Belgium,  the  British  Empire, 
China,  France,  Italy,  Japan,  The  Netherlands  and  Portugal: 

With  a  view  to  increasing  the  revenues  of  the  Chinese  Govern- 
ment, have  resolved  to  conclude  a  Treaty  relating  to  the  revision  of 


APPENDICES  376 

the  Chinese  customs  tariff  and  cognate  matters,  and  to  that  end 
have  appointed  as  their  Plenipotentiaries: 

The  President  of  the  United  States  of  America : 
Charles  Evans  Hughes, 
Henry  Cabot  Lodge,  * 

Oscar  W.  Underwood, 
Elihu  Root, 

citizens  of  the  United  States; 
His  Majesty  the  King  of  the  Belgians : 

Baron  de  Cartier  de  Marchienne,  Commander  of  the  Order  of 
Leopold  and  of  the  Order  of  the  Crown,  His  Ambassador 
Extraordinary  and  Plenipotentiary  at  Washington ; 
His  Majesty  the  King  of  the  United  Kingdom  of  Great  Britain 
and  Ireland  and  of  the  British  Dominions  beyond  the  Seas,  Em- 
peror of  India : 

The  Right  Honourable  Arthur  James  Balfour,  0.  M.,  M.  P., 

Lord  President  of  His  Privy  Council ; 
The  Right  Honourable  Baron  Lee  of  Fareham,  G.  B.  B., 

K.  C.  B.,  First  Lord  of  His  Admiralty ; 
The    Right    Honourable    Sir    Auckland    Campbell    Geddes, 
K.  C.  B.,  His  Ambassador  Extraordinary  and  Plenipoten- 
tiary to  the  United  States  of  America ; 
And 

for  the  Dominion  of  Canada: 

The  Right  Honourable  Sir  Robert  Laird  Borden,  G.  C.  M.  G., 
K.  C; 
for  the  Commonwealth  of  Australia: 

Senator  the  Right  Honourable  George  Foster  Pearce,  Minister 
for  Home  and  Territories ; 
for  the  Dominion  of  New  Zealand: 

The  Honourable  Sir  John  William  Salmond,  K.  C,  Judge  of 
the  Supreme  Court  of  New  Zealand ; 
for  the  Union  of  South  Africa : 

The  Right  Honourable  Arthur  James  Balfour,  0.  M.,  M.  P. ; 
for  India: 

The  Right  Honourable  Valingman  Sankaranarayana  Srinivasa 
S'astri,  Member  of  the  Indian  Council  of  State ; 


376  CHINA  AT  THE  CONFEEENCE 

The  President  of  the  Republic  of  China : 

Mr.  Sao-Ke  Alfred  Sze,  Envoy  Extraordinary  and  Minister 
Plenipotentiary  at  Washington ; 

Mr.  V.  K.  Wellington  Koo,  Envoy  Extraordinary  and  Minister 
Plenipotentiary  at  London ; 

Mr.  Chung-Hui  Wang,  former  Minister  of  Justice; 
The  President  of  the  French  Republic: 

Mr,  Albert  Sarraut,  Deputy,  Minister  of  the  Colonies; 

Mr.  Jules  J.  Jusserand,  Ambassador  Extraordinary  and  Pleni- 
potentiary to  the  United  States  of  America,  Grand  Cross  of 
the  National  Order  of  the  Legion  of  Honour; 
His  Majesty  the  King  of  Italy : 

The  Honourable  Carlo  Schanzer,  Senator  of  the  Kingdom; 

The  Honourable  Vittorio  Rolandi  Ricci,  Senator  of  the  King- 
dom. His  Ambassador  Extraordinary  and  Plenipotentiary 
at  Washington ; 

The  Honourable  Luigi  Albertini,  Senator  of  the  Kingdom ; 
His  Majesty  the  Emperor  of  Japan : 

Baron  Tomosaburo  Kato,  Minister  for  the  Navy,  Jimii,  a  mem- 
ber of  the  First  Class  of  the  Imperial  Order  of  the  Grand 
Cordon  of  the  Rising  Sun  with  the  Paulownia  Flower; 

Baron  Kijuro  Shidehara,  His  Ambassador  Extraordinary  and 
Plenipotentiary  at  Washington,  Joshii,  a  member  of  the 
First  Class  of  the  Imperial  Order  of  the  Rising  Sun ; 

Mr.  Masanao  Hanihara,  Vice-Minister  for  Foreign  Affairs, 
Jushii,  a  member  of  the  Second  Class  of  the  Imperial  Order 
of  the  Rising  Sun ; 
Her  Majesty  the  Queen  of  The  Netherlands : 

Jonkheer  Frans  Beelaerts  van  Blokland,  Her  Envoy  Extraor- 
dinary and  Minister  Plenipotentiary; 

Jonkheer  Willem  Hendrik  de  Beaufort,  Minister  Plenipoten- 
tiary, Charg6  d'  Affaires  at  Washington ; 
The  President  of  the  Portuguese  Republic : 

Mr.  Jos^  Francisco  de  Horta  Machado  da  Franca,  Viscount 
d'Alte,  Envoy  Extraordinary  and  Minister  Plenipotentiary 
at  Washington ; 

Mr.  Ernesto  Julio  de  Carvalho  e  Vasconcellos,  Captain  of  the 
Portuguese  Navy,  Technical  Director  of  the  Colonial  Office; 


APPENDICES  377 

Who,  having  comnmnicated  to  each  other  their  full  powers,  found 
to  be  in  good  and  due  form,  have  agreed  as  follows : 

ABTICLB   I 

The  representatives  of  the  Contracting  Powers  having  adopted, 
on  the  fourth  day  of  February,  1922,  in  the  City  of  Washington, 
a  Eesolution,  which  is  appended  as  an  Annex  to  this  Article,  with 
respect  to  the  revision  of  Chinese  Customs  duties,  for  the  purpose 
of  making  such  duties  equivalent  to  an  effective  5  per  centum  dd 
valorem,  in  accordance  with  existing  treaties  concluded  by  China 
with  other  nations,  the  Contracting  Powers  hereby  confirm  the  said 
Resolution  and  undertake  to  accept  the  tariff  rates  fixed  as  a  result 
of  such  revision.  The  said  tariff  rates  shall  become  effective  as  soon 
as  possible  but  not  earlier  than  two  months  after  publication  thereof. 

ANNEX 

With  a  view  to  providing  additional  revenue  to  meet  the  needs  of 
the  Chinese  Government,  the  Powers  represented  at  this  Conference, 
namely  the  United  States  of  America,  Belgium,  the  British  Empire, 
China,  France,  Italy,  Japan,  The  Netherlands,  and  Portugal,  agree : 

That  the  customs  schedule  of  duties  on  imports  into  China  adopted 
by  the  Tariff  Revision  Commission  at  Shanghai  on  December  19, 
1918,  shall  forthwith  be  revised  so  that  the  rates  of  duty  shall  be 
equivalent  to  5  per  cent  effective,  as  provided  for  in  the  several 
commercial  treaties  to  which  China  is  a  party. 

A  Revision  Commission  shall  meet  at  Shanghai,  at  the  earliest 
practicable  date,  to  effect  this  revision  forthwith  and  on  the  general 
lines  of  the  last  revision. 

This  Commission  shall  be  composed  of  representatives  of  the 
Powers  above  named  and  of  representatives  of  any  additional  Powers 
having  Governments  at  present  recognized  by  the  Powers  represented 
at  this  Conference  and  who  have  treaties  with  China  providing  for 
a  tariff  on  imports  and  exports  not  to  exceed  6  per  cent  ad  valorem 
and  who  desire  to  participate  therein. 

The  revision  shall  proceed  as  rapidly  as  possible  with  a  view  to 
its  completion  within  four  months  from  the  date  of  the  adoption  of 
this  Resolution  by  the  Conference  on  the  Limitation  of  Armament 
and  Pacific  and  Far  Eastern  Questions. 


378  CHINA  AT  THE  CONFERENCE 

The  revised  tariff  shall  become  effective  as  soon  as  possible  but 
not  earlier  than  two  months  after  its  publication  by  the  Revision 
Commission. 

The  Government  of  the  United  States,  as  convener  of  the  present 
Conference,  is  requested  forthwith  to  communicate  the  terms  of  this 
Resolution  to  the  Governments  of  Powers  not  represented  at  this 
Conference  but  who  participated  in  the  Revision  of  1918,  aforesaid. 

AETICLB   II 

Immediate  steps  shall  be  taken,  through  a  Special  Conference,  to 
prepare  the  way  for  the  speedy  abolition  of  likin  and  for  the  fulfill- 
ment of  the  other  conditions  laid  down  in  Article  VIII  of  the  Treaty 
of  September  5th,  1902,  between  Great  Britain  and  China,  in  Arti- 
cles IV  and  V  of  the  Treaty  of  October  8th,  1903,  between  the  United 
States  and  China,  and  in  Article  I  of  the  Supplementary  Treaty  of 
October  8th,  1903,  between  Japan  and  China,  with  a  view  to  levying 
the  surtaxes  provided  for  in  those  articles. 

The  Special  Conference  shall  be  composed  of  representatives  of 
the  Signatory  Powers,  and  of  such  other  Powers  as  may  desire  to 
participate  and  may  adhere  to  the  present  Treaty,  in  accordance 
with  the  provisions  of  Article  VIII,  in  sufficient  time  to  allow  their 
representatives  to  take  part.  It  shall  meet  in  China  within  three 
months  after  the  coming  into  force  of  the  present  Treaty,  on  a  day 
and  at  a  place  to  be  designated  by  the  Chinese  Government. 

ARTICLE  III 

The  Special  Conference  provided  for  in  Article  II  shall  consider 
the  interim  provisions  to  be  applied  prior  to  the  abolition  of  likin 
and  the  fulfillment  of  the  other  conditions  laid  down  in  the  articles 
of  the  treaties  mentioned  in  Article  II;  and  it  shall  authorize  the 
levying  of  a  surtax  on  dutiable  imports  as  from  such  date,  for  such 
purposes,  and  subject  to  such  conditions  as  it  may  determine. 

The  surtax  shall  be  at  a  uniform  rate  of  2^  per  centum  ad  valorem, 
provided,  that  in  case  of  certain  articles  of  luxury  which,  in  the 
opinion  of  the  Special  Conference,  can  bear  a  greater  increase  with- 
out unduly  impeding  trade,  the  total  surtax  may  be  increased  but 
may  not  exceed  5  per  centum  ad  valorem. 


APPENDICES  379 

ARTICLE  IV 

Following  the  inunediate  revision  of  the  customs  schedule  of 
duties  on  imports  into  China,  mentioned  in  Article  I,  there  shall 
be  a  further  revision  thereof  to  take  effect  at  the  expiration  of  four 
years  following  the  completion  of  the  aforesaid  immediate  revision, 
in  order  to  ensure  that  the  customs  duties  shall  correspond  to  the 
ad  valorem  rates  fixed  by  the  Special  Conference  provided  for  in 
Article  II. 

Following  this  further  revision  there  shall  be,  for  the  same  pur- 
pose, periodical  revisions  of  the  customs  schedule  of  duties  on  im- 
ports into  China  every  seven  years,  in  lieu  of  the  decennial  revision 
authorized  by  existing  treaties  with  China. 

In  order  to  prevent  delay,  any  revision  made  in  pursuance  of  this 
Article  shall  be  effected  in  accordance  with  rules  to  be  prescribed 
by  the  Special  Conference  provided  for  in  Article  II. 

ABTICLB  V 

In  all  matters  relating  to  customs  duties  there  shall  be  effective 
equality  of  treatment  and  opportunity  for  all  the  Contracting 
Powers. 

ABTICLB  VI 

The  principle  of  uniformity  in  the  rates  of  customs  duties  levied 
at  all  the  land  and  maritime  frontiers  of  China  is  hereby  recognized. 
The  Special  Conference  provided  for  in  Article  II  shall  make 
arrangements  to  give  practical  effect  to  this  principle;  and  it  is 
authorized  to  make  equitable  adjustments  in  those  cases  in  which  a 
customs  privilege  to  be  abolished  was  granted  in  return  for  some 
local  economic  advantage. 

In  the  meantime,  any  increase  in  the  rates  of  customs  duties  re- 
sulting from  tariff  revision,  or  any  surtax  hereafter  imposed  in 
pursuance  of  the  present  Treaty,  shall  be  levied  at  a  uniform  rate 
ad  valorem  at  all  land  and  maritime  frontiers  of  China. 

ARTICLE  VII 

The  charge  for  transit  passes  shall  be  at  the  rate  of  2^  per  centum 
ad  valorem  until  the  arrangements  provided  for  by  Article  II  come 
into  force. 


380  CHINA  AT  THE  CONFERENCE 

ABTICLB  Vin 

Powers  not  signatory  to  the  present  Treaty  whose  Governments 
are  at  present  recognized  by  the  Signatory  Powers,  and  whose 
present  treaties  with  China  provide  for  a  tariff  on  imports  and  ex- 
ports not  to  exceed  5  per  centum  ad  valorem,  shall  be  invited  to 
adhere  to  the  present  Treaty. 

The  Government  of  the  United  States  undertakes  to  make  the 
necessary  communications  for  this  purpose  and  to  inform  the  Gk)v- 
emraents  of  the  Contracting  Powers  of  the  replies  received.  Ad- 
herence by  any  Power  shall  become  effective  on  receipt  of  notice 
thereof  by  the  Government  of  the  United  States. 

ARTICLE  IX 

The  provisions  of  the  present  Treaty  shall  override  all  stipula- 
tions of  treaties  between  China  and  the  respective  Contracting 
Powers  which  are  inconsistent  therewith,  other  than  stipulations 
according  most  favored  nation  treatment. 

ASTICLB  X 

The  present  Treaty  shall  be  ratified  by  the  Contracting  Powers 
in  accordance  with  their  respective  constitutional  methods  and 
shall  take  effect  on  the  date  of  the  deposit  of  all  the  ratifications, 
which  shall  take  place  at  Washington  as  soon  as  possible.  The 
Government  of  the  United  States  will  transmit  to  the  other  Con- 
tracting Powers  a  certified  copy  of  the  proems- verbal  of  the  deposit 
of  ratifications. 

The  present  Treaty,  of  which  the  English  and  French  texts  are 
both  authentic,  shall  remain  deposited  in  the  archives  of  the  Govern- 
ment of  the  United  States,  and  duly  certified  copies  thereof  shall  be 
transmitted  by  that  Government  to  the  other  Contracting  Powers. 

In  faith  whereof  the  above-named  Plenipotentiaries  have  signed 
the  present  Treaty. 

Done  at  the  City  of  Washington  the  sixth  day  of  February,  One 
Thousand  Nine  Himdred  and  Twenty-two. 


APPENDICES  381 

APPENDIX  II:   KESOLUTIONS 

Besolntion  Begarding  a  Board  of  Reference  for  Far  Eastern 

Qnestion 

The  representatives  of  the  Powers  assembled  at  the  present  Con- 
ference at  Washington,  to  wit : 

The  United  States  of  America,  Belgium,  the  British  Empire, 
China,  France,  Italy,  Japan,  The  Netherlands,  and  Portugal : 

Desiring  to  provide  a  procedure  for  dealing  with  questions  that 
may  arise  in  connection  with  the  execution  of  the  provisions  of  Arti- 
cles III  and  V  of  the  Treaty  to  be  signed  at  Washington  on  Feb- 
ruary 6th,  1922,  with  reference  to  their  general  policy  designed  to 
stabilize  conditions  in  the  Far  East,  to  safeguard  the  rights  and 
interests  of  China,  and  to  promote  intercourse  between  China  and 
the  other  Powers  upon  the  basis  of  equality  of  opportunity ; 

Resolve  that  there  shaU  be  established  in  China  a  Board  of  Ref- 
erence to  which  any  questions  arising  in  connection  with  the  execu- 
tion of  the  aforesaid  Articles  may  be  referred  for  investigation  and 
report. 

The  Special  Conference  provided  for  in  Article  II  of  the  Treaty 
to  be  signed  at  Washington  on  February  6th,  1922,  with  reference 
to  the  Chinese  Customs  Tariff,  shall  formulate  for  the  approval  of 
the  Powers  concerned  a  detailed  plan  for  the  constitution  of  the 
Board. 

Adopted  by  the  Conference  on  the  Limitation  of  Armament  at  the 
Sixth  Plenary  Session,  February  4th,  1922. 

Besolntion  Begarding  Extraterritoriality  in  China 

The  representatives  of  the  Powers  hereinafter  named,  partici- 
pating in  the  discussion  of  Pacific  and  Far  Eastern  questions  in  the 
Conference  on  the  Limitation  of  Armament,  to  wit,  the  United 
States  of  America,  Belgium,  the  British  Empire,  France,  Italy, 
Japan,  the  Netherlands,  and  Portugal, — 

Having  taken  note  of  the  fact  that  in  the  Treaty  between  Great 
Britain  and  China  dated  September  5,  1902,  in  the  Treaty  between 
the  United  States  of  America  and  China  dated  October  8,  1903,  and 
in  the  Treaty  between  Japan  and  China  dated  October  8,  1903, 
these  several  Powers  have  agreed  to  give  every  assistance  towards 


382  CHINA  AT  THE  CONFERENCE 

the  attainment  by  the  Chinese  Government  of  its  expressed  desire 
to  reform  its  judicial  system  and  to  bring  it  into  accord  with  that 
of  Western  nations,  and  have  declared  that  they  are  also  "  prepared 
to  relinquish  extraterritorial  rights  when  satisfied  that  the  state  of 
the  Chinese  laws,  the  arrangements  for  their  administration,  and 
other  considerations  warrant "  them  in  so  doing ; 

Being  sympathetically  disposed  towards  furthering  in  this  regard 
the  aspiration  to  which  the  Chinese  delegation  gave  expression  on 
November  16,  1921,  to  the  effect  that  "  immediately,  or  as  soon  as 
circumstances  will  permit,  existing  limitations  upon  China's  politi- 
cal, jurisdictional  and  administrative  freedom  of  action  are  to  be 
removed  " ; 

Considering  that  any  determination  in  regard  to  such  action 
as  might  be  appropriate  to  this  end  must  depend  upon  the  ascer- 
tainment and  appreciation  of  complicated  states  of  fact  in  regard 
to  the  laws  and  the  judicial  system  and  the  methods  of  judicial 
administration  of  China,  which  this  Conference  is  not  in  a  position 
to  determine ; 

Have  resolved 

That  the  Grovernments  of  the  Powers  above  named  shall  establish 
a  Commission  (to  which  each  of  such  Governments  shall  appoint 
one  member)  to  inquire  into  the  present  practice  of  extraterritorial 
jurisdiction  in  China,  and  into  the  laws  and  the  judicial  system  and 
the  methods  of  judicial  administration  of  China,  with  a  view  to 
reporting  to  the  Governments  of  the  several  Powers  above  named 
their  findings  of  fact  in  regard  to  these  matters,  and  their  recom- 
mendations as  to  such  means  as  they  may  find  suitable  to  improve 
the  existing  conditions  of  the  administration  of  justice  in  China, 
and  to  assist  and  further  the  efforts  of  the  Chinese  Government  to 
effect  such  legislation  and  judicial  reforms  as  would  warrant  the 
several  Powers  in  relinquishing,  either  progressively  or  otherwise, 
their  respective  rights  of  extraterritoriality ; 

That  the  Commission  herein  contemplated  shall  be  constituted 
within  three  months  after  the  adjournment  of  the  Conference  in 
accordance  with  detailed  arrangements  to  be  hereafter  agreed  upon 
by  the  Governments  of  the  Powers  above  named,  and  shall  be  in- 
structed to  submit  its  report  and  recommendations  within  one  year 
after  the  first  meeting  of  the  Commission ; 


APPENDICES  383 

That  each  of  the  Powers  above  named  shall  be  deemed  free  to 
accept  or  to  reject  all  or  any  portion  of  the  recommendations  of  the 
Commission  herein  contemplated,  but  that  in  no  case  shall  any  of 
the  said  Powers  make  its  acceptance  of  aU  or  any  portion  of  such 
recommendations  either  directly  or  indirectly  dependent  on  the 
granting  by  China  of  any  special  concession,  favor,  benefit  or  im- 
munity, whether  political  or  economic. 

ADDITIONAL  BESOLUTION 

That  the  non-signatory  Powers,  having  by  treaty  extraterritorial 
rights  in  China,  may  accede  to  the  resolution  affecting  extraterri- 
toriality and  the  administration  of  justice  in  China  by  depositing 
within  three  months  after  the  adjournment  of  the  Conference  a 
written  notice  of  accession  with  the  Government  of  the  United 
States  for  communication  by  it  to  each  of  the  signatory  Powers. 

ADDITIONAL  BESOLUTION 

That  China,  having  taken  note  of  the  resolutions  affecting  the 
establishment  of  a  Commission  to  investigate  and  report  upon 
extraterritoriality  and  the  administration  of  justice  in  China,  ex- 
presses its  satisfaction  with  the  sympathetic  disposition  of  the 
Powers  hereinbefore  named  in  regard  to  the  aspiration  of  the 
Chinese  Government  to  secure  the  abolition  of  extraterritoriality  in 
China,  and  declares  its  intention  to  appoint  a  representative  who 
shall  have  the  right  to  sit  as  a  member  of  the  said  Commission, 
it  being  understood  that  China  shall  be  deemed  free  to  accept  or 
to  reject  any  or  all  of  the  recommendations  of  the  Commission. 
Furthermore,  China  is  prepared  to  cooperate  in  the  work  of  this 
Commission  and  to  afford  to  it  every  possible  facility  for  the  suc- 
cessful accomplishment  of  its  tasks. 

Adopted  by  the  Conference  on  the  Limitation  of  Armament  at 
the  Fourth  Plenary  Session,  December  10,  1921. 

Resolntion  Eegarding  Foreign  Postal  Agencies  in  China 

A.  Recognizing  the  justice  of  the  desire  expressed  by  the  Chinese 
Government  to  secure  the  abolition  of  foreign  postal  agencies  in 
China,  save  or  except  in  leased  territories  or  as  otherwise  specifically 
provided  by  treaty,  it  is  resolved : 


384  CHINA  AT  THE  COKPERENCE 

(1)  The  four  Powers  having  such  postal  agencies  agree  to  their 

abandonment  subject  to  the  following  conditions : 

(a)  That  an  efficient  Chinese  postal  service  is  main- 

tained; 

(b)  That  an  assur^ance  is  given  by  the  Chinese  (Jov- 

emment  that  they  contemplate  no  change  in  the 
present  postal  administration  so  far  as  the  status 
of  the  foreign  Co-Director  General  is  concerned. 

(2)  To  enable  China  and  the  Powers  to  make  the  necessary 

dispositions,  this  arrangement  shall  come  into  force  and 
effect  not  later  than  January  1,  1923. 

B.  Pending  the  complete  withdrawal  of  foreign  postal  agencies, 
the  four  Powers  concerned  severally  undertake  to  afford  full  facili- 
ties to  the  Chinese  customs  authorities  to  examine  in  those  agencies 
all  postal  matter  (excepting  ordinary  letters,  whether  registered  or 
not,  which  upon  external  examination  appear  plainly  to  contain  only 
written  matter)  passing  through  them,  with  a  view  to  ascertaining 
whether  they  contain  articles  which  are  dutiable  or  contraband  or 
which  otherwise  contravene  the  customs  regulations  or  laws  of 
China. 

Adopted  by  the  Conference  of  the  Limitation  of  Armament  at 
the  Fifth  Plenary  Session,  February  1st,  1922. 

Eesolntion  Regarding  Armed  Forces  in  China 

Whereas,  The  Powers  have  from  time  to  time  stationed  armed 
forces,  including  police  and  railway  guards,  in  China  to  protect  the 
lives  and  property  of  foreigners  lawfully  in  China; 

And  whereas.  It  appears  that  certain  of  these  armed  forces  are 
maintained  in  China  without  the  author;ity  of  any  treaty  or  agree- 
ment; 

And  WHiEREAS,  The  Powers  have  declared  their  intention  to  with- 
draw their  armed  forces  now  on  duty  in  China  without  the  authority 
of  any  treaty  or  agreement,  whenever  China  shall  assure  the  pro- 
tection of  the  lives  and  property  of  foreigners  in  China ; 

And  whereas,  China  has  declared  her  intention  and  capacity 
to  assure  the  protection  of  the  lives  and  property  of  foreigners  in 
China; 


APPENDICES  385 

Now,  To  the  end  that  there  may  be  clear  understanding  of  the 
conditions  upon  which  in  each  case  the  practical  execution  of  those 
intentions  must  depend ; 

It  is  resolved.  That  the  Diplomatic  Eepresentatives  in  Pekin  of 
the  Powers  now  in  Conference  at  Washington,  to  wit,  the  United 
States  of  America,  Belgium,  the  British  Empire,  France,  Italy, 
Japan,  The  Netherlands  and  Portugal,  will  be  instructed  by  their 
respective  Grovemments,  whenever  China  shall  so  request,  to  asso- 
ciate themselves  with  three  representatives  of  the  Chinese  Govern- 
ment to  conduct  collectively  a  full  and  impartial  inquiry  into  the 
issues  raised  by  the  foregoing  declarations  of  intention  made  by 
the  Powers  and  by  China  and  shall  thereafter  prepare  a  full  and 
comprehensive  report  setting  out  without  reservation  their  findings 
of  fact  and  their  opinion  with  regard  to  the  matter  hereby  referred 
for  inquiry,  and  shall  furnish  a  copy  of  their  report  to  each  of  the 
nine  Governments  concerned  which  shall  severally  make  public  the 
report  with  such  comment  as  each  may  deem  appropriate.  The 
representatives  of  any  of  the  Powers  may  make  or  join  in  minority 
reports  stating  their  differences,  if  any,  from  the  majority  report. 

That  each  of  the  Powers  above  named  shall  be  deemed  free  to 
accept  or  reject  all  or  any  of  the  findings  of  fact  or  opinions  ex- 
pressed in  the  report  but  that  in  no  case  shall  any  of  the  said  Powers 
make  its  acceptance  of  all  or  any  of  the  findings  of  fact  or  opinions 
either  directly  or  indirectly  dependent  on  the  granting  by  China  of 
any  special  concession,  favor,  benefit  or  immimity,  whether  political 
or  economic. 

Adopted  by  the  Conference  on  the  Limitation  of  Armament  at 
the  Fifth  Plenary  Session,  February  1st,  1922. 

Besolation  Eegarding  Eadio  Stations  in  China  and  AccompanTing 

Declarations 

The  representatives  of  the  Powers  hereinafter  named  partici- 
pating in  the  discussion  of  Pacific  and  Far  Eastern  questions  in  the 
Conference  on  the  Limitation  of  Armament — to  wit:  The  United 
States  of  America,  Belgium,  The  British  Empire,  China,  France, 
Italy,  Japan,  The  Netherlands  and  Portugal, 
26 


386  CHINA  AT  THE  CONFERENCE 

Have  resolved 

1.  That  all  radio  stations  in  China  whether  maintained  under 
the  provisions  of  the  international  protocol  of  September  7,  1901,  or 
in  fact  maintained  in  the  grounds  of  any  of  the  foreign  legations  in 
China,  shall  be  limited  in  their  use  to  sending  and  receiving  govern- 
ment messages  and  shall  not  receive  or  send  commercial  or  personal 
or  unofficial  messages,  including  press  matter :  Provided,  however, 
that  in  case  all  other  telegraphic  communication  is  interrupted, 
then,  upon  official  notification  accompanied  by  proof  of  such  in- 
terruption to  the  Chinese  Ministry  of  Commimications,  such  sta- 
tions may  afford  temporary  facilities  for  commercial,  personal  or  un- 
official messages,  including  press  matter,  until  the  Chinese  Govern- 
ment has  given  notice  of  the  termination  of  the  interruption ; 

2.  All  radio  stations  operated  within  the  territory  of  China  by 
a  foreign  government  or  the  citizens  or  subjects  thereof  under 
treaties  or  concessions  of  the  Government  of  China,  shall  limit  the 
messages  sent  and  received  by  the  terms  of  the  treaties  or  concessions 
under  which  the  respective  stations  are  maintained ; 

3.  In  case  there  be  any  radio  station  maintained  in  the  terri- 
tory of  China  by  a  foreign  government  or  citizens  or  subjects  thereof 
without  the  authority  of  the  Chinese  Government,  such  station  and 
all  the  plant,  apparatus  and  material  thereof  shall  be  transferred  to 
and  taken  over  by  the  Government  of  China,  to  be  operated  under 
the  direction  of  the  Chinese  Ministry  of  Communications  upon  fair 
and  full  compensation  to  the  owners  for  the  value  of  the  installation, 
as  soon  as  the  Chinese  Ministry  of  Communications  is  prepared  to 
operate  the  same  effectively  for  the  general  public  benefit ; 

4.  If  any  questions  shall  arise  as  to  the  radio  stations  in  leased 
territories,  in  the  South  Manchurian  Railway  Zone  or  in  the  French 
Concession  at  Shanghai,  they  shall  be  regarded  as  matters  for  dis- 
cussion between  the  Chinese  Government  and  the  Governments  con- 
cerned. 

5.  The  owners  or  managers  of  all  radio  stations  maintained  in 
the  territory  of  China  by  foreign  powers  or  citizens  or  subjects 
thereof  shall  confer  with  the  Chinese  Ministry  of  Communications 
for  the  purpose  of  seeking  a  common  arrangement  to  avoid  inter- 
ference in  the  use  of  wave  lengths  by  wireless  stations  in  China, 
subject  to  such  general  arrangements  as  may  be  made  by  an  interna- 


APPENDICES  387 

tional  conference  convened  for  the  revision  of  the  roles  established 
by  the  International  Eadio  Telegraph  Convention  signed  at  London, 
July  5,  1912. 

Adopted  by  the  Conference  on  the  Limitation  of  Armament  at 
the  Fifth  Plenary  Session,  February  Ist,  1922. 

DB<XARATION    CONCEBNINO   THE   RESOLUTION    ON    RADIO   STATIONS   IN   CHINA   OF 

DECEMBER  7,  1921 

The  Powers  other  than  China  declare  that  nothing  in  paragraphs 
3  or  4  of  the  Resolutions  of  7th  December,  1921,  is  to  be  deemed 
to  be  an  expression  of  opinion  by  the  Conference  as  to  whether  the 
stations  referred  to  therein  are  or  are  not  authorized  by  China. 

They  further  give  notice  that  the  result  of  any  discussion  arising 
under  paragraph  4  must,  if  it  is  not  to  be  subject  to  objection  by 
them,  conform  with  the  principles  of  the  Open  Door  or  equality  of 
opportunity  approved  by  the  Conference. 

CHINESE  DECLARATION    OONCERNINQ  RESOLUTION    OF   DECEMBER   7tH    REGARDINQ 
RADIO  STATIONS  IN  CHINA 

The  Chinese  Delegation  takes  this  occasion  formally  to  declare 
that  the  Chinese  Government  does  not  recognize  or  concede  the  right 
of  any  foreign  Power  or  of  the  nationals  thereof  to  install  or  operate, 
without  its  express  consent,  radio  stations  in  legation  grounds, 
settlements,  concessions,  leased  territories,  railway  areas  or  other 
similar  areas. 

Besolntion  Regarding^  Unification  of  Railways  in  China  and 
Accompanying  Declaration  by  China 

The  Powers  represented  in  this  Conference  record  their  hope  that 
to  the  utmost  degree  consistent  with  legitimate  existing  rights,  the 
future  development  of  railways  in  China  shall  be  so  conducted 
as  to  enable  the  Chinese  Government  to  effect  the  unification  of  rail- 
ways into  a  railway  system  under  Chinese  control,  with  such  foreign 
financial  and  technical  assitance  as  may  prove  necessary  in  the 
interests  of  that  system. 

Adopted  by  the  Conference  on  the  Limitation  of  Armament  at  the 
Fifth  Plenary  Session,  Feburary  Ist,  1922. 


388  CHINA  AT  THE  CONFERENCE 

STATEMENT  REGARDING  CHINESE  RAILWAYS  MADE  ON  JANUARY  19,  1922,  BY  THB 
CHINESE  DELEGATION 

The  Chinese  Delegation  notes  with  sympathetic  appreciation  the 
expression  of  the  hope  of  the  Powers  that  the  existing  and  future 
railways  of  China  may  be  unified  under  the  control  and  operation  of 
the  Chinese  Government  with  such  foreign  financial  and  technical 
assistance  as  may  be  needed.  It  is  our  intention  as  speedily  as  pos- 
sible to  bring  about  this  result.  It  is  our  purpose  to  develop  existing 
and  future  railways  in  accordance  with  a  general  programme  that 
will  meet  the  economic,  industrial  and  commercial  requirements 
of  China.  It  will  be  our  policy  to  obtain  such  foreign  financial  and 
technical  assistance  as  may  be  needed  from  the  Powers  in  accordance 
with  the  principles  of  the  Open  Door  or  equal  opportunity ;  and  the 
friendly  support  of  these  Powers  will  be  asked  for  the  effort  of  the 
Chinese  Government  to  bring  all  the  railways  of  China,  now  existing 
or  to  be  built,  imder  its  effective  and  unified  control  and  operation. 

Resolution  Regarding  the  Rednction  of  Chinese  Military  Forces 

Whereas  the  Powers  attending  this  Conference  have  been  deeply 
impressed  with  the  severe  drain  on  the  public  revenue  of  China 
through  the  maintenance  in  various  parts  of  the  country,  of  military 
forces,  excessive  in  number  and  controlled  by  the  military  chiefs 
of  the  provinces  without  coordination. 

And  whereas  the  continued  maintenance  of  these  forces  appears 
to  be  mainly  responsible  for  China's  present  unsettled  political  con- 
ditions. 

And  whereas  it  is  felt  that  large  and  prompt  reductions  of  these 
forces  will  not  only  advance  the  cause  of  China's  political  unity 
and  economic  development  but  will  hasten  her  financial  rehabili- 
tation ; 

Therefore,  without  any  intention  to  interfere  in  the  internal 
problems  of  China,  but  animated  by  the  sincere  desire  to  see  China 
develop  and  maintain  for  herself  an  effective  and  stable  govern- 
ment alike  in  her  own  interest  and  in  the  general  interest  of  trade ; 

And  being  inspired  by  the  spirit  of  this  Conference  whose  aim 
is  to  reduce,  through  the  limitation  of  armament,  the  enormous 
disbursements  which  manifestly  constitute  the  greater  part  of  the 
encumbrance  upon  enterprise  and  national  prosperity; 


APPENDICES  389 

It  is  resolved :  That  this  Conference  express  to  China  the  earnest 
hope  that  immediate  and  effective  steps  may  be  taken  by  the  Chinese 
Government  to  reduce  the  aforesaid  military  forces  and  expenditures. 

Adopted  by  the  Conference  on  the  Limitation  of  Armament  at 
the  Fifth  Plenary  Session,  February  Ist,  1922. 

Besolntion  Regarding  Existing  Commitments  of  China  or  With 
Eespect  to  China 
The  Powers  represented  in  tliis  Conference,  considering  it  desir- 
able that  there  should  hereafter  be  full  publicity  with  respect  to  all 
matters  affecting  the  political  and  other  international  obligations 
of  China  and  of  the  several  Powers  in  relation  to  China,  are  agreed 
as  follows : 

I.  The  several  Powers  other  than  China  will  at  their  earliest  con- 
venience file  with  the  Secretariat  General  of  the  Conference  for 
transmission  to  the  participating  Powers,  a  list  of  all  treaties,  con- 
ventions, exchange  of  notes,  or  other  international  agreements  which 
they  may  have  with  China,  or  with  £iny  other  Power  or  Powers  in 
relation  to  China,  which  they  deem  to  be  still  in  force  and  upon 
which  they  may  desire  to  rely.  In  each  case,  citations  will  be  given 
to  any  official  or  other  publication  in  which  an  authoritative  text 
of  the  documents  may  be  found.  In  any  case  in  which  the  document 
may  not  have  been  published,  a  copy  of  the  text  (in  its  original 
language  or  languages)  will  be  filed  with  the  Secretariat  General 
of  the  Conference. 

Every  Treaty  or  other  international  agreement  of  the  character 
described  which  may  be  concluded  hereafter  shall  be  notified  by  the 
Governments  concerned  within  sixty  (60)  days  of  its  conclusion 
to  the  Powers  who  are  signatories  of  or  adherents  to  this  agreement. 

II.  The  several  Powers  other  than  China  will  file  with  the  Sec- 
retariat General  of  the  Conference  at  their  earliest  convenience  for 
transmission  to  the  participating  Powers  a  list,  as  nearly  complete 
as  may  be  possible,  of  all  those  contracts  between  their  nationals, 
of  the  one  part,  and  the  Chinese  Government  or  any  of  its  adminis- 
trative subdivisions  or  local  authorities,  of  the  other  part,  which 
involve  any  concession,  franchise,  option  or  preference  with  respect 
to  railway  construction,  mining,  forestry,  navigation,  river  con- 
servancy, harbor  works,  reclamation,  electrical  communications,  or 


390  CHINA  AT  THE  CONFERENCE 

other  public  works  or  public  services,  or  for  the  sale  of  arms  or 
ammunition,  or  which  involve  a  lien  upon  any  of  the  public  revenues 
or  properties  of  the  Chinese  Government  or  of  any  of  its  adminis- 
trative subdivisions.  There  shall  be,  in  the  case  of  each  document 
80  listed,  either  a  citation  to  a  published  text,  or  a  copy  of  the  text 
itself. 

•  Every  contract  of  the  public  character  described  which  may  be 
concluded  hereafter  shall  be  notified  by  the  Governments  con- 
cerned within  sixty  (60)  days  after  the  receipt  of  information  of  its 
conclusion  to  the  Powers  who  are  signatories  of  or  adherents  to 
this  agreement. 

.  III.  The  Chinese  Government  agrees  to  notify  in  the  conditions 
laid  down  in  this  agreement  every  treaty  agreement  or  contract  of 
the  character  indicated  herein  which  has  been  or  may  hereafter  be 
concluded  by  that  Government  or  by  any  local  authority  in  China 
with  any  foreign  Power  or  the  nationals  of  any  foreign  Power 
whether;  party  to  this  agreement  or  not,  so  far  as  the  information 
is  in  its  possession. 

IV.  The  Governments  of  Powers  having  treaty  relations  with 
China,  which  are  not  represented  at  the  present  Conference,  shall 
be  invited  to  adhere  to  this  agreement. 

The  United  States  Government,  as  convener  of  the  Conference, 
undertakes  to  communicate  this  agrement  to  the  Governments  of 
the  said  Powers,  with  a  view  to  obtaining  their  adherence  thereto 
as  soon  as  possible. 

Adopted  by  the  Conference  on  the  Limitation  of  Armament  at 
the  Fifth  Plenary  Session,  February  1st,  1923. 

Eesolution  Regarding  the  Chinese  Eastern  Railway,  Approved  by 
All  the  Powers  Including  China 

Resolved,  That  the  preservation  of  the  Chinese  Eastern  Railway 
for  those  in  interest  requires  that  better  protection  be  given  to  the 
railway  and  the  persons  engaged  in  its  operation  and  use,  a  more 
careful  selection  of  personnel  to  secure  efficiency  of  service,  and  a 
more  economcial  use  of  funds  to  prevent  waste  of  the  property. 

That  the  subject  should  immediately  be  dealt  with  through  the 
proper  Diplomatic  channels. 


APPENDICES  391 

Adopted  by  the  Conference  on  the  Limitation  of  Armament  at 
the  Sixth  Plenary  Session,  February  4th,  1922. 

Besolntion  Regarding  the  Chinese  Eastern  Railway,  Approved  by 
All  the  Powers  Other  Than  China 

The  Powers  other  than  China  in  agreeing  to  the  resolution  regard- 
ing the  Chinese  Eastern  Railway,  reserve  the  right  to  insist  here- 
after upon  the  responsibility  of  China  for  performance  or  non- 
performance of  the  obligations  towards  the  foreign  stockholders, 
bondholders  and  creditors  of  the  Chinese  Eastern  Railway  Company 
which  the  Powers  deem  to  result  from  the  contracts  under  which 
the  railroad  was  built  and  the  action  of  China  thereunder  and  the 
obligations  which  they  deem  to  be  in  the  nature  of  a  trust  resulting 
from  the  exercise  of  power  by  the  Chinese  Government  over  the 
possession  and  administration  of  the  railroad. 


APPENDIX  III :  TREATY  FOR  THE  SETTLEMENT  OF 

OUTSTANDING  QUESTIONS  RELATIVE  TO 

SHANTUNG 

China  and  Japan,  being  equally  animated  by  a  sincere  desire  to 
settle  amicably  and  in  accordance  with  their  common  interest  out- 
standing questions  relative  to  Shantung,  have  resolved  to  conclude  a 
treaty  for  the  settlement  of  such  questions,  and  have  to  that  end 
named  as  their  Plenipotentiaries,  that  is  to  say : 

His  Excellency  the  President  of  the  Chinese  Republic : 

Sao-Ke  Alfred  Sze,  Envoy  Extraordinary  and  Minister  Pleni- 
potentiary ; 
Vikyuin  Wellington  Koo,  Envoy  Extraordinary  and  Minister 

Plenipotentiary;  and 
Chung-Hui  Wang,  Former  Minister  of  Justice; 
His  Majesty  the  Emperor  of  Japan  : 

Baron  Tomosaburo  Kato,  Minister  of  the  Navy; 
Baron  Kijuro  Shidehara,  Ambassador  Extraordinary  and  Pleni- 
potentiary ;  and 
Masanao  Hanihara,  Vice-Minister  for  Foreign  Affairs; 


392  CHINA  AT  THE  CONFERENCE 

Who,  having  communicated  to  each  other  their  respective  full 
powers,  found  to  be  in  good  and  due  form,  have  agreed  upon  the 
following  Articles: 

SECTION  I 
Restoration  of  the  Former  German  Leased  Territory 

OP    KlAOCHOW 
ARTICLE  I 

Japan  shall  restore  to  China  the  former  German  Leased  Terri- 
tory of  Kiaochow. 

ARTICLE  II 

The  Government  of  the  Chinese  Republic  and  the  Government 
of  Japan  shall  each  appoint  three  Commissioners  to  form  a  Joint 
Commission,  with  powers  to  make  and  carry  out  detailed  arrange- 
ments relating  to  the  transfer  of  the  administration  of  the  former 
German  Leased  Territory  of  Kiaochow  and  to  the  transfer  of  public 
properties  in  the  said  Territory  and  to  settle  other  matters  likewise 
requiring  adjustment. 

For  such  purposes,  the  Joint  Commission  shall  meet  immediately 
upon  the  coming  into  force  of  the  present  Treaty. 

ARTICLE  III 

The  transfer  of  the  administration  of  the  former  German  Leased 
Territory  of  Kiaochow  and  the  transfer  of  public  properties  in  the 
said  Territory,  as  well  as  the  adjustment  of  other  matters  under 
the  preceding  Article,  shall  be  completed  as  soon  as  possible,  and, 
in  any  case,  not  later  than  six  months  from  the  date  of  the  coming 
into  force  of  the  present  Treaty. 

ARTICLE   IV 

The  Government  of  Japan  undertakes  to  hand  over  to  the  Gov- 
ernment of  the  Chinese  Republic  upon  the  transfer  to  China  of  the 
administration  of  the  former  German  Leased  Territory  of  Kiaochow, 
such  archives,  registers,  plans,  title-deeds  and  other  documents  in 
the  possession  of  Japan,  or  certified  copies  thereof,  as  may  be  neces- 
sary for  the  transfer  of  the  administration,  as  well  as  those  that  may 


APPENDICES  393 

be  useful  for  the  subsequent  administration  by  China  of  the  said 
Territory  and  of  the  Fifty  Kilometre  Zone  around  Kiaochow  Bay. 

SECTION  II 

Transfer  of  Public  Properties 

article  v 

The  Government  of  Japan  undertakes  to  transfer  to  the  Govern- 
ment of  the  Chinese  Republic  all  public  properties  including  land, 
buildings,  works  or  establishments  in  the  former  German  Leased 
Territory  of  Kiaochow,  whether  formerly  possessed  by  the  German 
authorities,  or  purchased  or  constructed  by  the  Japanese  authorities 
during  the  period  of  the  Japanese  administration  of  the  said  Terri- 
tory, except  those  indicated  in  Article  VII  of  the  present  Treaty. 

ARTICLE   VI 

In  the  transfer  of  public  properties  under  the  preceding  Article, 
no  compensation  will  be  claimed  from  the  Government  of  the 
Chinese  Republic:  Provided,  however,  that  for  those  purchased  or 
constructed  by  the  Japanese  authorities,  and  also  for  the  improve- 
ments on  or  additions  to  those  formerly  possessed  by  the  German 
authorities,  the  Government  of  the  Chinese  Republic  shall  refund 
a  fair  and  equitable  proportion  of  the  expenses  actually  incurred  by 
the  Government  of  Japan,  having  regard  to  the  principle  of  de- 
preciation and  continuing  value. 

ARTICLE  VII 

Such  public  properties  in  the  former  German  Leased  Territory 
of  Kiaochow  as  are  required  for  the  Japanese  Consulate  to  be  estab- 
lished in  Tsingtao  shall  be  retained  by  the  Government  of  Japan, 
and  those  required  more  especialy  for  the  benefit  of  the  Japanese 
community,  including  public  schools,  shrines  and  cemeteries,  shall 
be  left  in  the  hands  of  the  said  community. 

ARTICLE  VIII 

Details  of  the  matters  referred  to  in  the  preceding  three  Articles 
shall  be  arranged  by  the  Joint  Commission  provided  for  in  ArticJe 
11  of  the  present  Treaty. 


394  CHINA  AT  THE  CONFERENCE 

SECTION  ni 

Withdrawal  of  Japanese  Troops 

article  ix 

The  Japanese  troops,  including  gendarmes,  now  stationed  along 

the  Tsingtao-Tsinanf  u  Railway  and  its  branches,  shall  be  withdrawn 

as  soon  as  the  Chinese  police  or  military  force  shall  have  been  sent 

to  take  over  the  protection  of  the  Railway. 

ARTICLE  X 

The  disposition  of  the  Chinese  police  or  military  force  and  the 
withdrawal  of  the  Japanese  troops  under  the  preceding  Article  may 
be  effected  in  sections. 

The  date  of  the  completion  of  such  process  for  each  section  shall 
be  arranged  in  advance  between  the  competent  authorities  of  China 
and  Japan. 

The  entire  withdrawal  of  such  Japanese  troops  shall  be  effected 
within  three  months,  if  possible,  and,  in  any  case,  not  later  than 
six  months,  from  the  date  of  the  signature  of  the  present  Treaty. 

ARTICLE  XI 

The  Japanese  garrison  at  Tsingtao  shall  be  completely  withdrawn 
simultaneously,  if  possible,  with  the  transfer  to  China  of  the  ad- 
ministration of  the  former  German  Leased  Territory  of  Kiaochow, 
and,  in  any  case,  not  later  than  thirty  days  from  the  date  of  such' 
transfer. 

SECTION  IV 

Maritime  Customs  at  Tsingtao 

article  xii 

The  Custom  House  of  Tsingtao  shall  be  made  an  integral  part 

of  the  Chinese  Maritime  Customs  upon  the  coming  into  force  of 

the  present  Treaty. 

ARTICLE   XIII 

The  Provisional  Agreement  of  August  6, 1915,  between  China  and 
Japan,  relating  to  the  reopening  of  the  OflBce  of  the  Chinese  Mari- 
time Customs  at  Tsingtao  shall  cease  to  be  effective  upon  the  coming 
into  force  of  the  present  Treaty. 


APPENDICES  395 

SECTION  V 

TSINGTAO-TSINANFU  RAILWAY 
ARTICLE   XIV 

Japan  shall  transfer  to  China  the  Tsingtao-Tsinanfu  Railway  and 
its  branches,  together  with  all  other  properties  appurtenant  thereto, 
including  wharves,  warehouses  and  other  similar  properties. 

AETICLE   XV 

China  undertakes  to  reimburse  to  Japan  the  actual  value  of  all  the 
Railway  properties  mentioned  in  the  preceding  Article. 

The  actual  value  to  be  so  reimbursed  shall  consist  of  the  sum  of 
fifty-three  million  four  hundred  and  six  thousand,  one  hundred  and 
forty-one  (53,406,141)  gold  Marks  (which  is  the  assessed  value  of 
such  portion  of  the  said  properties  as  was  left  behind  by  the  Ger- 
mans), or  its  equivalent,  plus  the  amount  which  Japan,  during  her 
administration  of  the  Railway,  has  actually  expended  for  permanent 
improvements  on  or  additions  to  the  said  properties,  less  a  suitable 
allowance  for  depreciation. 

It  is  understood  that  no  charge  will  be  made  with  respect  to  the 
wharves,  warehouses  and  other  similar  properties  mentioned  in  the 
preceding  Article,  except  for  such  permanent  improvements  on  or 
additions  to  them  as  may  have  been  made  by  Japan,  during  her 
administration  of  the  Railway,  less  a  suitable  allowance  for  de- 
preciation. 

ARTICLE  XVI 

The  Government  of  the  Chinese  Republic  and  the  Government  of 
Japan  shall  each  appoint  three  Commissioners  to  form  a  Joint  Rail- 
way Commission,  with  powers  to  appraise  the  actual  value  of  the 
Railway  properties  on  the  basis  defined  in  the  preceding  Article, 
and  to  arrange  the  transfer  of  the  said  properties. 

ARTICLE    XVII 

The  transfer  of  all  the  Railway  properties  under  Article  XIV  of 
the  present  Treaty  shall  be  completed  as  soon  as  possible,  and,  in 
any  case,  not  later  than  nine  months  from  the  date  of  the  coming 
into  force  of  the  present  Treaty. 


396  CHINA  AT  THE  CONFEEENCE 

ARTICLE  XVIII 

To  effect  the  reimbursement  under  Article  XV  of  the  present 
Treaty,  China  shall  deliver  to  Japan  simultaneously  with  the  com- 
pletion of  the  transfer  of  the  Railway  properties,  Chinese  Govern- 
ment Treasury  Notes,  secured  on  the  properties  and  revenues  of  the 
Railway,  and  running  for  a  period  of  fifteen  years,  but  redeemable, 
whether  in  whole  or  in  part,  at  the  option  of  China,  at  the  end  of 
five  years  from  the  date  of  the  delivery  of  the  said  Treasury  Notes, 
or  at  any  time  thereafter  upon  six  months'  previous  notice. 

ARTICLE  XIX 

Pending  the  redemption  of  the  said  Treasury  Notes  under  the 
preceding  Article,  the  Government  of  the  Chinese  Republic  will 
select  and  appoint,  for  so  long  a  period  as  any  part  of  the  said 
Treasury  Notes  shall  remain  imredeemed,  a  Japanese  subject  to  be 
Traffic  Manager,  and  another  Japanese  subject  to  be  Chief  Ac- 
countant jointly  with  the  Chinese  Chief  Accountant  and  with  co- 
ordinate functions. 

These  officials  shall  all  be  under  the  direction,  control  and  super- 
vision of  the  Chinese  Managing  Director,  and  removable  for  cause. 

ARTICLE  XX 

Financial  details  of  a  technical  character  relating  to  the  said 
Treasury  Notes,  not  provided  for  in  this  Section,  shall  be  deter- 
mined in  common  accord  between  the  Chinese  and  Japanese  authori- 
ties as  soon  as  possible,  and,  in  any  case,  not  later  than  six  months 
from  the  date  of  the  coming  into  force  of  the  present  Treaty. 

SECTION  VI 

Extensions  of  the  Tsingtao-Tsinanfd  Railway 

article  xxi 

The  concession  relating  to  the  two  extensions  of  the  Tsingtao- 
Tsinanfu  Railway,  namely,  the  Tsinanfu-Sbunteh  and  the  Kaomi- 
Hsuchowfu  lines,  shall  be  made  open  to  the  common  activity  of  an 
international  financial  group,  on  terms  to  be  arranged  between  the 
Government  of  the  Chinese  Republic  and  the  said  group. 


APPENDICES  397 

SECTION  vn 

Mines 
article  xxii 

The  mines  of  Tsechwan,  Fangtze  and  Chinlingchen,  for  which  the 
mining  rights  were  formerly  granted  by  China  to  Germany,  shall 
be  handed  over  to  a  company  to  be  formed  under  a  special  charter 
of  the  Government  of  the  Chinese  Republic,  in  which  the  amount  of 
Japanese  capital  shall  not  exceed  that  of  Chinese  capital. 

The  mode  and  terms  of  such  arrangements  shall  be  determined 
by  the  Joint  Commission  provided  for  in  Article  II  of  the  present 
Treaty. 

SECTION  vm 
Opening  of  the  Former  German  Leased  Territory 

OF  KlAOCHOW 
article  XXIII 

The  Government  of  Japan  declares  that  it  will  not  seek  the 
establishment  of  an  exclusive  Japanese  settlement,  or  of  an  inter- 
national settlement,  in  the  former  German  Leased  Territory  of 
Kiaochow. 

The  Government  of  the  Chinese  Republic,  on  its  part,  declares 
that  the  entire  area  of  the  former  German  Leased  Territory  of 
Kiaochow  will  be  opened  to  foreign  trade,  and  that  foreign  nationals 
will  be  permitted  freely  to  reside  and  to  carry  on  commerce,  industry 
and  other  lawful  pursuits  within  such  area. 

article  XXIV 

The  Government  of  the  Chinese  Republic  further  declares  that 
vested  rights  lawfully  and  equitably  acquired  by  foreign  nationals  in 
the  former  German  Leased  Territory  of  Kiaochow,  whether  under 
the  German  regime  or  during  the  period  of  the  Japanese  adminis- 
tration, will  be  respected. 

All  questions  relating  to  the  status  or  validity  of  such  vested  rights 
acquired  by  Japanese  subjects  or  Japanese  companies  shall  be 
adjusted  by  the  Joint  Commission  provided  for  in  Article  II  of  the 
present  Treaty. 


398  CHINA  AT  THE  CONFERENCE 

SECTION  IX 

Salt  Industry 

article  xxv 

Whereas  the  salt  industry  is  a  Government  monopoly  in  China, 
it  is  agreed  that  the  interests  of  Japanese  subjects  or  Japanese  com- 
panies actually  engaged  in  the  said  industry  along  the  coast  of 
Kiaochow  Bay  shall  be  purchased  by  the  Government  of  the  Chinese 
Republic  for  fair  compensation,  and  that  the  exportation  to  Japan 
of  a  quantity  of  salt  produced  by  such  industry  along  the  said  coast 
is  to  be  permitted  on  reasonable  terms. 

Arrangements  for  the  above  purposes,  including  the  transfer  of 
the  said  interests  to  the  Government  of  the  Chinese  Republic,  shall 
be  made  by  the  Joint  Commission  provided  for  in  Article  II  of  the 
present  Treaty.  They  shall  be  completed  as  soon  as  possible,  and, 
in  any  case,  not  later  than  six  montlis  from  the  date  of  the  coming 
into  force  of  the  present  Treaty. 

SECTION  X 

Submarine  Cables 

article  xxvi 

The  Government  of  Japan  declares  that  all  the  rights,  title  and 
privileges  concerning  the  former  German  submarine  cables  between 
Tsingtao  and  Chefoo  and  between  Tsingtao  and  Shanghai  are  vested 
in  China,  with  the  exception  of  those  portions  of  the  said  two  cables 
which  have  been  utilized  by  the  Government  of  Japan  for  the  laying 
of  a  cable  between  Tsingtao  and  Sasebo;  it  being  understood  that 
the  question  relating  to  the  landing  and  operation  at  Tsingtao  of 
the  said  Tsingtao-Sasebo  cable  shall  be  adjusted  by  the  Joint  Com- 
mission provided  for  in  Article  II  of  the  present  Treaty,  subject  to 
the  terms  of  the  existing  contracts  to  which  China  is  a  party. 

SECTION  XI 
Wireless  Stations 
article  xxvii 
The  Government  of  Japan  undertakes  to  transfer  to  the  Govern- 
ment of  the  Chinese  Republic  the  Japanese  wireless  stations  at 


APPENDICES  399 

Tsingtao  and  Tsinanfu  for  fair  compensation  for  the  value  of  these 
stations,  upon  the  withdrawal  of  the  Japanese  troops  at  the  said 
two  places,  respectively. 

Details  of  such  transfer  and  compensation  shall  be  arranged  by 
the  Joint  Commission  provided  for  in  Article  II  of  the  present 
Treaty. 

ABTICLE  XXVIII 

The  present  Treaty  (including  the  Annex  thereto)  shall  be  rati- 
fied, and  the  ratifications  thereof  shall  be  exchanged  at  Peking  as 
soon  as  possible,  not  later  than  four  months  from  the  date  of  its 
signature. 

It  shall  come  into  force  from  the  date  of  the  exchange  of  ratifi- 
cations. 

In  witness  whereof,  the  respective  Plenipotentiaries  have  signed 
the  present  Treaty  in  duplicate,  in  the  English  language,  and  have 
aJOSxed  thereto  their  seals. 

Done  at  the  City  of  Washington  this  fourth  day  of  February,  One 
Thousand  Nine  Hundred  and  Twenty-two. 

ANNEX 

I 

Renunciation  of  Pbeferential  Eights 

The  Government  of  Japan  declares  that  it  renounces  all  pref- 
erential rights  with  respect  to  foreign  assistance  in  persons,  capital 
and  material  stipulated  in  the  Treaty  of  March  6,  1898,  between 
China  and  Germany. 

II 

Transfer  of  Public  Properties 

It  is  imderstood  that  public  properties  to  be  transferred  to  the 
Government  of  the  Chinese  Republic  under  Article  V  of  the  present 
Treaty  include  (1)  all  public  works,  such  as  roads,  water  works, 
parks,  drainage  and  sanitary  equipment,  and  (2)  all  public  enter- 
prises such  as  those  relating  to  telephone,  electric  light,  stockyard 
and  laundry. 


400  CHINA  AT  THE  CONFERENCE 

The  Government  of  the  Chinese  Republic  declares  that  in  the 
management  and  maintenance  of  public  works  to  be  so  transferred 
to  the  Government  of  the  Chinese  Republic,  the  foreign  community 
in  the  former  German  Leased  Territory  of  Kiaoehow  shall  have  fair 
representation. 

The  Government  of  the  Chinese  Republic  further  declares  that, 
upon  taking  over  the  telephone  enterprise  in  the  former  German 
Leased  Territory  of  Kiaoehow,  it  will  give  due  consideration  to  the 
requests  from  the  foreign  community  in  the  said  Territory  for 
such  extensions  and  improvements  in  the  telephone  enterprise  as 
may  be  reasonably  required  by  the  general  interests  of  the  public. 

With  respect  to  public  enterprises  relating  to  electric  light,  stock- 
yard and  laundry,  the  Government  of  the  Chinese  Republic,  upon 
taking  them  over,  shall  re-transfer  them  to  the  Chinese  municipal 
authorities  of  Tsingtao,  which  shall,  in  turn,  cause  commercial 
companies  to  be  formed  under  Chinese  laws  for  the  management 
and  working  of  the  said  enterprises,  subject  to  municipal  regulation 
and  supervision. 

Ill 

Makitime  Customs  at  Tsingtao 

The  Government  of  the  Chinese  Republic  declares  that  it  will 
instruct  the  Inspector  General  of  the  Chinese  Maritime  Customs 
( 1 )  to  permit  Japanese  traders  in  the  former  German  Leased  Terri- 
tory of  Kiaoehow  to  commimicate  in  the  Japanese  language  with 
the  Custom  House  of  Tsingtao;  and  (2)  to  give  consideration, 
within  the  limits  of  the  established  service  regulations  of  the  Chinese 
Maritime  Customs,  to  the  diverse  needs  of  the  trade  of  Tsingtao, 
in  the  selection  of  a  suitable  staflE  for  the  said  Custom  House. 

TV 

TSINGTAO-TSINANFU  RAILWAY 

Should  the  Joint  Railway  Commission  provided  for  in  Article 
XVI  of  the  present  Treaty  fail  to  reach  an  agreement  on  any  matter 
within  its  competence,  the  point  or  points  at  issue  shall  be  taken 
up  by  the  Government  of  the  Chinese  Republic  and  the  Government 
of  Japan  for  discussion  and  adjustment  by  means  of  diplomacy. 


APPENDICES  401 

In  the  determination  of  such  point  or  points,  the  Government  of 
the  Chinese  Eepublie  and  the  Government  of  Japan  shall,  if  neces- 
sary, obtain  recomendations  of  experts  of  a  third  Power  or  Powers 
who  shall  be  designated  in  common  accord  between  the  two  Gov- 
ernments. 

V 
Chefoo-Weihsien  Railway 

The  Government  of  Japan  will  not  claim  that  the  option  for 
financing  the  Chefoo-Weihsien  Eailway  should  be  made  open  to  the 
common  activity  of  the  International  Financial  Cons<jrtium,  pro- 
vided that  the  said  Railway  is  to  be  contracted  with  Chinese  capital. 

VI 

Opening  of  the  Former  German  Leased  Territory 

OF    KlAOCHOW 

The  Government  of  the  Chinese  Republic  declares  that,  pending 
the  enactment  and  general  application  of  laws  regulating  the  system 
of  local  self-government  in  China,  the  Chinese  local  authorities  will 
ascertain  the  views  of  the  foreign  residents  in  the  former  German 
Leased  Territory  of  Kiaochow  in  such  municpal  matters  as  may 
directly  affect  their  welfare  and  interests. 


APPENDIX  IV :  STATEMENTS  IN  THE  CONFERENCE 
REGARDING  SIBERIA 

Japanese  Statement 

The  statement  by  Baron  Shidehara  on  behalf  of  Japan  was  as 
follows : 

"  The  Military  expedition  of  Japan  to  Siberia  was  originally 
undertaken  in  common  accord  and  in  cooperation  with  the  United 
States  in  1918.  It  was  primarily  intended  to  render  assistance  to 
the  Czecho-Slovak  troops  who  in  their  homeward  journey  across 
Siberia  from  European  Russia,  found  themselves  in  grave  and 
pressing  danger  at  the  hands  of  hostile  forces  under  German  com- 
mand. The  Japanese  and  American  expeditionary  forces  together 
with  other  Allied  troops  fought  their  way  from  Vladivostok  far  into 
27 


402  CHINA  AT  THE  CONFERENCE 

tlie  region  of  the  Amur  and  the  Trans-Baikal  Provinces  to  protect 
the  railway  lines  which  afforded  the  sole  means  of  transportation 
of  the  Czecho-Slovak  troops  from  the  interior  of  Siberia  to  the  port 
of  Vladivostok.  Difficulties  which  the  Allied  forces  had  to  encounter 
in  their  operations  in  the  severe  cold  winter  of  Siberia  were  immense. 

"  In  January,  1920,  the  United  States  decided  to  terminate  its 
military  undeirtaking  in  Siberia,  and  ordered  the  withdrawal  of 
its  forces.  For  some  time  thereafter  Japanese  troops  continued 
alone  to  carry  out  the  duty  of  guarding  several  points  along  the 
Trans-Siberian  Railways  in  fulfillment  of  Inter- Allied  arrangements 
and  of  affording  facilities  to  the  returning  Czecho-Slovaks. 

"  The  last  column  of  Czecho-Slovak  troops  safely  embarked  from 
Vladivostok  in  September,  1920,  Ever  since  then  Japan  has  been 
looking  forward  to  an  early  moment  for  the  withdrawal  of  her 
troops  from  Siberia.  The  maintenance  of  such  troops  in  a  foreign 
land  is  for  her  a  costly  and  thankless  undertaking,  and  she  will  be 
only  too  happy  to  be  relieved  of  such  responsibility.  In  fact,  the 
evacuation  of  the  Trans-Baikal  and  the  Amur  Provinces  was  already 
completed  in  1920.  The  only  region  which  now  remains  to  be 
evacuated  is  a  southern  portion  of  the  Maritime  Province  around 
Vladivostok  and  Nikolsk. 

"  It  will  be  appreciated  that  for  Japan  the  question  of  the  with- 
drawal of  troops  from  Siberia  is  not  quite  as  simple  as  it  was  for 
other  Allied  Powers.  In  the  first  place,  there  is  a  considerable 
number  of  Japanese  residents  who  had  lawfully  and  under  guar- 
antees of  treaty  established  themselves  in  Siberia  long  before  the 
Bolshevik  eruption,  and  were  there  entirely  welcomed.  In  1917, 
prior  to  the  Joint  American-Japanese  military  enterprise,  the  num- 
ber of  such  residents  was  already  no  less  than  9,717.  In  the  actual 
situation  prevailing  there,  those  Japanese  residents  can  hardly  be 
expected  to  look  for  the  protection  of  their  lives  and  property  to 
any  other  authorities  than  Japanese  troops.  Whatever  district  those 
troops  have  evacuated  in  the  past  have  fallen  into  disorder,  and 
practically  all  Japanese  residents  have  had  precipitately  to  with- 
draw, to  seek  for  their  personal  safety.  In  so  withdrawing,  they 
have  been  obliged  to  leave  behind  large  portions  of  their  property, 
abandoned  and  unprotected,  and  their  homes  and  places  of  business 
have  been  destroyed.    While  the  hardships  and  losses  thus  caused 


APPENDICES  403 

the  Japanese  in  the  Trans-Baikal  and  the  Amur  provinces  have 
been  serious  enough,  more  extensive  damages  are  likely  to  follow 
from  the  evacuation  of  Vladivostok  in  which  a  larger  number  of 
Japanese  have  always  been  resident  and  a  greater  amount  of 
Japanese  capital  invested. 

"  There  is  another  difficulty  by  which  Japan  is  faced  in  proceed- 
ing to  the  recall  of  her  troops  from  the  Maritime  Province.  Due 
to  geographical  propinquity,  the  general  situation  in  the  districts 
around  Vladivostok  and  Nikolsk  is  bound  to  affect  the  security 
of  Korean  frontier.  In  particular,  it  is  known  that  these  districts 
have  long  been  the  base  of  Korean  conspiracies  against  Japan. 
Those  hostile  Koreans,  joining  hands  with  lawless  elements  in 
Russia,  attempted  in  1920  to  invade  Korea  through  the  Chinese 
territory  of  Chientao.  They  set  fire  to  the  Japanese  Consulate 
at  Hunchun,  and  committed  indiscriminate  acts  of  murder  and 
pillage.  At  the  present  time  they  are  under  the  effective  control 
of  Japanese  troops  stationed  in  the  Maritime  Province,  but  they 
will  no  doubt  renew  the  attempt  to  penetrate  into  Korea  at  the 
first  favorable  opportunity  that  may  present  itself. 

"  Having  regard  to  those  considerations,  the  Japanese  Govern- 
ment have  felt  bound  to  exercise  precaution  in  carrying  out  the 
contemplated  evacuation  of  the  Maritime  Province.  Should  they 
take  hasty  action  without  adequate  provision  for  the  future  they 
would  be  delinquent  in  their  duty  of  affording  protection  to  a  large 
number  of  their  nationals  resident  in  the  districts  in  question  and 
of  maintaining  order  and  security  in  Korea. 

"  It  should  be  made  clear  that  no  part  of  the  Maritime  Province 
is  under  Japan's  military  occupation.  Japanese  troops  are  still 
stationed  in  the  southern  portion  of  that  Province,  but  they  have 
not  set  up  any  civil  or  military  administration  to  displace  local 
authorities.  Their  activity  is  confined  to  measures  of  self-protection 
against  the  menace  to  their  own  safety  and  to  the  safety  of  their 
country  and  nationals.  They  are  not  in  occupation  of  those  districts 
any  more  than  American  or  other  Allied  troops  could  be  said  to  have 
been  in  occupation  of  the  places  in  which  they  were  formerly  sta- 
tioned. 

"The  Japanese  Government  are  anxious  to  see  an  orderly  and 
stable  authority  speedily  reestablished  in  the  Far  Eastern  posses- 


404  CHINA  AT  THE  CONFERENCE 

sions  of  Russia.  It  was  in  this  spirit  that  they  manifested  a  keen 
interest  in  the  patriotic  but  ill-fated  struggle  of  Admiral  Kolchak. 
They  have  shown  readiness  to  lend  their  good  offices  for  prompting^ 
the  reconciliation  of  various  political  groups  in  Eastern  Siberia. 
But  they  have  carefully  refrained  from  supporting  one  faction 
against  another.  It  will  be  recalled,  for  instance,  that  they  with- 
held all  assistance  from  General  Rozanow  against  the  revolutionary 
movements  which  led  to  his  overthrow  in  January,  1920.  They 
maintained  an  attitude  of  strict  neutrality,  and  refused  to  interfere 
in  these  movements,  which  it  would  have  been  quite  easy  for  them 
to  suppress  if  they  had  so  desired. 

"  In  relation  to  this  policy  of  noninter;vention,  it  may  be  useful 
to  refer  briefly  to  the  past  relations  between  the  Japanese  authori- 
ties and  Ataman  Semenoff,  which  seem  to  have  been  a  source  of 
popular  misgiving  and  speculation.  It  will  be  remembered  that 
the  growing  rapprochement  between  the  Germans  and  the  Bolshevik 
Government  in  Russia  in  the  early  part  of  1918  naturally  gave  rise 
to  apprehensions  in  the  aUied  countries  that  a  considerable  quantity 
of  munitions  supplied  by  those  countries  and  stored  in  Vladivostok 
might  be  removed  by  the  Bolsheviks  to  European  Russia  for  the 
use  of  the  Germans.  Ataman  Semenoff  was  then  in  Siberia  and 
was  organizing  a  movement  to  check  such  Bolshevik  activities  and 
to  preserve  order  and  stability  in  that  region.  It  was  in  this  situa- 
tion that  Japan,  as  well  as  some  of  the  Allies,  began  to  give  support 
to  the  Cossack  chief.  After  a  few  months,  such  support  by  the  other 
powers  was  discontinued.  But  the  Japanese  were  reluctant  to 
abandon  their  friend,  whose  efforts  in  the  allied  cause  they  had 
originally  encouraged;  and  they  maintained  for  some  time  their 
connection  with  Ataman  Semenoff.  They  had,  however,  no  inten- 
tion whatever  of  interfering  in  the  domestic  affairs  of  Russia,  and 
when  it  was  found  that  the  assistance  rendered  to  the  Ataman  was 
likely  to  complicate  the  internal  situation  in  Siberia,  they  termi- 
nated all  relations  with  him,  and  no  support  of  any  kind  has  since 
been  extended  to  him  by  the  Japanese  authorities. 

"  The  Japanese  Government  are  now  seriously  considering  plans 
which  would  justify  them  in  carrying  out  their  decision  of  the 
complete  withdrawal  of  Japanese  troops  from  the  Maritime  Prov- 
ince, with  reasonable  precaution  for  the  security  of  Japanese  resi- 


APPENDICES  405 

dents  and  of  the  Korean  frontier  regions.  It  is  for  this  purpose 
that  negotiations  were  opened  some  time  ago  at  Dairen  between 
the  Japanese  representatives  and  the  agents  of  the  Chita  Govern- 
ment. 

"  Those  negotiations  at  Dairen  are  in  no  way  intended  to  secure 
for  Japan  any  right  or  advantage  of  an  exclusive  nature.  They 
have  been  solely  actuated  by  a  desire  to  adjust  some  of  the  more 
pressing  questions  with  which  Japan  is  confronted  in  relation  to 
Siberia.  They  have  essentially  in  view  the  conclusion  of  provisional 
commercial  arrangements,  the  removal  of  the  existing  menace  to 
the  security  of  Japan  and  to  the  lives  and  property  of  Japanese 
residents  in  Eastern  Siberia,  the  provision  of  guarantees  for  the 
freedom  of  lawful  undertakings  in  that  region,  and  the  prohibition 
of  Bolshevik  propaganda  over  the  Siberian  border.  Should  adequate 
provisions  be  arranged  on  the  line  indicated  the  Japanese  Govern- 
ment will  at  once  proceed  to  the  complete  withdrawal  of  Japanese 
troops  from  the  Maritime  Province. 

"  The  occupation  of  certain  points  in  the  Russian  Province  of 
Sakhalin  is  wholly  different,  both  in  nature  and  in  origin,  from 
the  stationing  of  troops  in  the  Maritime  Province.  History  affords 
few  instances  similar  to  the  incident  of  1920  at  Nikolaievsk,  where 
more  than  seven  hundred  Japanese,  including  women  and  children, 
as  well  as  the  duly  recognized  Japanese  Consul  and  his  family  and 
his  official  staff,  were  cruelly  tortured  and  massacred.  No  nation 
worthy  of  respect  will  possibly  remain  forbearing  under  such  a 
strain  of  provocation.  Nor  was  it  possible  for  the  Japanese  Govern- 
ment to  disregard  the  just  popular  indignation  aroused  in  Japan  by 
the  incident.  Under  the  actual  condition  of  things,  Japan  found 
no  alternative  but  to  occupy,  as  a  measure  of  reprisal,  certain  points 
in  the  Russian  Province  of  Sakhalin  in  which  the  outrage  was  com- 
mitted, pending  the  establishment  in  Russia  of  a  responsible  au- 
thority with  whom  she  can  communicate  in  order  to  obtain  due 
satisfaction. 

"  Nothing  is  further  from  the  thought  of  the  Japanese  Govern- 
ment than  to  take  advantage  of  the  present  helpless  conditions 
of  Russia  for  prosecuting  selfish  designs.  Japan  recalls  with 
deep  gratitude  and  appreciation  the  brilliant  role  which  Russia 
played  in  the  interest  of  civilization  during  the  earlier  stage  of 


406  CHINA  AT  THE  CONFERENCE 

the  Great  War.  The  Japanese  people  have  shown  and  will  con- 
tinue to  show  every  sympathetic  interest  in  the  efforts  of  patriotic 
Russians  aspiring  to  the  unity  and  rehabilitation  of  their  country. 
The  military  occupation  of  the  Russian  Province  of  Sakhalin  is 
only  a  temporary  measure,  and  will  naturally  come  to  an  end  as 
soon  as  a  satisfactory  settlement  of  the  question  shall  have  been 
arranged  with  an  orderly  Russian  Government. 

"  In  conclusion,  the  Japanese  Delegation  is  authorized  to  declare 
that  it  is  the  fixed  and  settled  policy  of  Japan  to  respect  the  terri- 
torial integrity  of  Russia,  and  to  observe  the  principle  of  noninter- 
vention in  the  internal  affairs  of  that  country,  as  well  as  the  prin- 
ciple of  equal  opportunity  for  the  commerce  and  industry  of  all 
nations  in  every  part  of  the  Russian  possessions." 

Statement  of  the  United  States 

The  reply  on  behalf  of  the  American  Government,  by  the  Secre- 
tary of  State,  was  as  follows : 

"  The  American  Delegation  has  heard  the  statement  by  Baron 
Shidehara  and  has  tsiken  note  of  the  assurances  given  on  behalf 
of  the  Japanese  Government  with  respect  to  the  withdrawal  of 
Japanese  troops  from  the  Maritime  Province  of  Siberia  and  from 
the  Province  of  Sakhalin.  The  American  Delegation  has  also 
noted  the  assurance  of  Japan  by  her  authorized  spokesman  that  it 
is  her  fixed  and  settled  policy  to  respect  the  territorial  integrity  of 
Russia,  and  to  observe  the  principle  of  nonintervention  in  the  in- 
ternal affairs  of  that  country,  as  well  as  the  principle  of  equal 
opportunity  for  the  commerce  and  industry  of  all  nations  in  every 
part  of  the  Russian  possessions. 

"These  assurances  are  taken  to  mean  that  Japan  does  not  seek, 
through  her  military  operations  in  Siberia,  to  impair  the  rights 
of  the  Russian  people  in  any  respect,  or  to  obtain  any  unfair  com- 
mercial advantages,  or  to  absorb  for  her  own  use  the  Siberian 
fisheries,  or  to  set  up  an  exclusive  exploitation  either  of  the  re- 
sources of  Sakhalin  or  of  the  Maritime  Province. 

"  As  Baron  Shidehara  pointed  out,  the  military  expedition  of 
Japan  to  Siberia  was  originally  undertaken  in  common  accord  and 
in  cooperation  with  the  United  States.  It  will  be  recalled  that  public 
assurances  were  given  at  the  outset  by  both  Governments  of  a  firm 


APPENDICES  407 

intention  to  respect  the  territorial  integrity  of  Eussia  and  to  abstain 
from  all  interference  in  Russian  internal  polities.  In  view  of  the 
reference  by  Baron  Shidehara  to  the  participation  of  the  American 
Government  in  the  expedition  of  1918,  I  should  like  to  place  upon 
our  records  for  transmission  to  the  Conference  the  purposes  which 
were  then  clearly  stated  by  both  Governments. 

"  The  American  Government  set  forth  its  aims  and  policies  pub- 
licly in  July,  1918.  The  purposes  of  the  expedition  were  said  to 
be,  first,  to  help  the  Czecho-Slovaks  consolidate  their  forces ;  second, 
to  steady  any  efforts  at  self-government  or  self-defense  in  which 
the  Eussians  themselves  might  be  willing  to  accept  assistance ;  and, 
third,  to  guard  the  military  stores  at  Vladivostok. 

"  The  American  Government  opposed  the  idea  of  a  military 
intervention,  but  regarded  military  action  as  admissible  at  the 
time  solely  for  the  purpose  of  helping  the  Czecho-Slovaks  consoli- 
date their  forces  and  get  into  successful  cooperation  with  their 
Slavic  kinsmen,  and  to  steady  any  efforts  at  self-government  or 
self-defense  in  which  the  Eussians  themselves  might  be  willing  to 
accept  assistance.  It  was  stated  that  the  American  Government 
proposed  to  ask  all  associated  in  this  course  of  action  to  unite  in 
assuring  the  people  of  Eussia  in  the  most  public  and  solemn  manner 
that  none  of  the  Governments  uniting  in  action  either  in  Siberia  or 
in  northern  Eussia  contemplated  any  interference  of  any  kind  with 
the  political  sovereignty  of  Eussia,  any  intervention  in  her  internal 
affairs,  or  any  impairment  of  her  territorial  integrity  either  now  or 
thereafter,  but  that  each  of  the  Associated  Powers  had  the  single 
object  of  affording  such  aid  as  should  be  acceptable,  and  only  such 
aid  as  should  be  acceptable,  to  the  Eussian  people  in  their  endeavor 
to  regain  control  of  their  own  affairs,  their  own  territory,  and  their 
own  destiny. 

"  What  I  have  just  stated  is  found  in  the  public  statement  of 
the  American  Government  at  that  time. 

"  The  Japanese  Government,  with  the  same  purpose,  set  forth 
its  position  in  a  statement  published  by  the  Japanese  Government 
on  August  2,  1918,  in  which  it  was  said : 

'*  *  The  Japanese  Government,  being  anxious  to  fall  in  with  the 
desires  of  the  American  Government  and  also  to  act  in  harmony 
with  the  Allies  in  this  expedition,  have  decided  to  proceed  at  once 


408  CHINA  AT  THE  CONFERENCE 

to  dispatch  suitable  forces  for  the  proposed  mission.  A  certain 
number  of  these  troops  will  be  sent  forthwith  to  Vladivostok.  In 
adopting  this  course,  the  Japanese  Government  remain  unshaken 
in  their  constant  desire  to  promote  relations  of  enduring  friendship 
with  Russia  and  the  Russian  people,  and  reaffirm  their  avowed 
policy  of  respecting  the  territorial  integrity  of  Russia  and  of  abstain- 
ing from  all  interference  in  her  internal  politics.  They  further 
declare  that,  upon  the  realization  of  the  project  above  indicated, 
they  will  immediately  withdraw  all  Japanese  troops  from  Russian 
territory  and  will  leave  wholly  unimpaired  the  sovereignty  of  Russia 
in  all  its  phases,  whether  political  or  military.' 

"  The  United  States  of  America  withdrew  its  troops  from  Siberia 
in  the  spring  of  1920,  because  it  considered  that  the  original  pur- 
poses of  the  expedition  had  either  been  accomplished  or  would  not 
longer  be  subserved  by  continued  military  activity  in  Siberia.  The 
American  Government  then  ceased  to  be  a  party  to  the  expedition, 
but  it  remained  a  close  observer  of  events  in  Eastern  Siberia  and 
has  had  an  extended  diplomatic  correspondence  upon  this  subject 
with  the  Government  of  Japan. 

"  It  must  be  frankly  avowed  that  this  correspondence  has  not 
always  disclosed  an  identity  of  views  between  the  two  Governments. 
The  United  States  has  not  been  unmindful  of  the  direct  exposure 
of  Japan  to  Bolshevism  in  Siberia  and  the  special  problems  which 
the  conditions  existing  there  have  created  for  the  Japanese  Govern- 
ment, but  it  has  been  strongly  disposed  to  the  belief  that  the  public 
assurances  given  by  the  two  Governments  at  the  inception  of  the 
joint  expedition  nevertheless  required  the  complete  withdrawal  of 
Japanese  troops  from  all  Russian  territory — if  not  immediately 
after  the  departure  of  the  Czecho-Slovak  troops,  then  within  a 
reasonable  time. 

"As  to  the  occupation  of  Sakhalin  in  reprisal  for  the  massacre 
of  the  Japanese  at  Nikolaievsk,  the  United  States,  not  unimpressed 
by  the  serious  character  of  that  catastrophe,  but,  having  in  mind 
the  conditions  accepted  by  both  Governments  at  the  outset  of  the 
joint  expedition,  of  which  the  Nikolaievsk  massacres  must  be  con- 
sidered an  incident,  it  has  regretted  that  Japan  should  deem  neces- 
sary the  occupation  of  Russian  territory  as  a  means  of  assuring  a 
suitable  adjustment  with  a  future  Russian  Government. 


APPENDICES  409 

"The  general  position  of  the  American  Government  was  set 
forth  in  a  communication  to  Japan  of  May  31,  1981.  In  that 
communication  appears  the  following  statement: 

"  *  The  Government  of  the  United  States  would  be  untrue  to 
the  spirit  of  cooperation  which  led  it,  in  the  summer  of  1918, 
upon  an  understanding  with  the  Government  of  Japan,  to  dis- 
patch troops  to  Siberia,  if  it  neglected  to  point  out  that,  in  its 
view,  continued  occupation  of  the  strategic  centers  in  Eastern 
Siberia — involving  the  indefinite  possession  of  the  port  of  Vladi- 
vostok, the  stationing  of  troops  at  Habarovsk,  Nikolaievsk,  De 
Castries,  Mago,  Sophiesk,  and  other  important  points,  the  seizure 
of  the  Russian  portion  of  Sakhalin,  and  the  establishment  of  a 
civil  administration,  which  inevitably  lends  itself  to  misconception 
and  antagonism — tends  rather  to  increase  than  to  allay  the  unrest 
and  disorder  in  that  region, 

" '  The  military  occupation ' — I  am  still  reading  from  the  note 
of  May  31,  1921 — *  The  military  occupation  in  reprisal  for  the 
Nikolaievsk  affair  is  not  fundamentally  a  question  of  the  validity 
of  procedure  under  the  recognized  rules  of  international  law.' 

"The  note  goes  on  to  say  that  *the  issue  presented  is  that  of 
the  scrupulous  fulfillment  of  the  assurances  given  to  the  Russian 
people,  which  were  a  matter  of  frank  exchanges  and  of  apparently 
complete  understanding  between  the  Government  of  the  United 
States  and  of  Japan.  These  assurances  were  intended  by  the 
Government  of  the  United  States  to  convey  to  the  people  of  Russia 
a  promise  on  the  part  of  the  two  Governments  not  to  use  the 
joint  expedition,  or  any  incidents  which  might  arise  out  of  it,  as  an 
occasion  to  occupy  territory,  even  temporarily,  or  to  assume  any 
military  or  administrative  control  over  the  people  of  Siberia.* 

"  Further,  in  the  same  note,  the  American  Government  stated 
its  position  as  follows: 

"  *  In  view  of  its  conviction  that  the  course  followed  by  the 
Government  of  Japan  brings  into  question  the  very  definite  under- 
standing concluded  at  the  time  troopw  were  sent  to  Siberia,  the 
Government  of  the  United  States  must  in  candor  explain  its  posi- 
tion and  say  to  the  Japanese  Government  that  the  Government  of 
the  United  States  can  neither  now  nor  hereafter  recognize  a.s  valid 
any  claims  or  titles  arising  out  of  the  present  occupation  and  con- 


410  CHINA  AT  THE  CONFERENCE 

trol,  and  that  it  can  not  acquiesce  in  any  action  taken  by  the  Gov- 
ernment of  Japan  which  might  impair  existing  treaty  rights  or 
the  political  or  territorial  integrity  of  Russia. 

" '  The  Government  of  Japan  will  appreciate  that,  in  expressing 
its  views,  the  Government  of  the  United  States  has  no  desire  to 
impute  to  the  Government  of  Japan  motives  or  purposes  other  than 
those  which  have  heretofore  been  so  frankly  avowed.  The  purpose 
of  this  Government  is  to  inform  the  Japanese  Government  of  its 
own  conviction  that,  in  the  present  time  of  disorder  in  Russia,  it 
is  more  than  ever  the  duty  of  those  who  look  forward  to  the  tran- 
quilization  of  the  Russian  people,  and  a  restoration  of  normal  con- 
ditions among  them,  to  avoid  all  action  which  might  keep  alive  their 
antagonism  and  distrust  toward  outside  political  agencies.  Now, 
especially,  it  is  incumbent  upon  the  friends  of  Russia  to  hold  aloof 
from  the  domestic  contentions  of  the  Russian  people,  to  be  scrupu- 
lous to  avoid  inflicting  what  might  appear  to  them  a  vicarious 
penalty  for  sporadic  acts  of  lawlessness,  and,  above  all,  to  abstain 
from  even  the  temporary  and  conditional  impairment  by  any  foreign 
Power  of  the  territorial  status  which,  for  them  as  for  other  peoples, 
is  a  matter  of  deep  and  sensitive  national  feeling  transcending  per- 
haps even  the  issues  at  stake  among  themselves.' 

"  To  that  American  note  the  Japanese  Government  replied  in 
July,  1921,  setting  forth  in  substance  what  Baron  Shidehara  has 
now  stated  to  this  Committee,  pointing  out  the  conditions  under 
which  Japan  had  taken  the  action  to  which  reference  was  made, 
and  giving  the  assurances,  which  have  here  been  reiterated,  with 
respect  to  its  intention  and  policy. 

"While  the  discussion  of  these  matters  has  been  attended  with 
the  friendliest  feeling,  it  has  naturally  been  the  constant  and 
earnest  hope  of  the  American  Government — and  of  Japan  as  well, 
I  am  sure — ^that  this  occasion  for  divergence  of  views  between  the 
two  Government  might  be  removed  with  the  least  possible  delay. 
It  has  been  with  a  feeling  of  special  gratification,  therefore,  that 
the  American  Delegation  has  listened  to  the  assurances  given  by 
their  Japanese  colleague,  and  it  is  with  the  greatest  friendliness 
that  they  reiterate  the  hope  that  Japan  will  find  it  possible  to  carry 
out  within  the  near  future  her  expressed  intention  of  terminating 
finally  the  Siberian  expedition  and  of  restoring  Sakhalin  to  the 
Russian  people." 


APPENDICES  411 

French  Statement 
On  behalf  of  the  French  Government  M.  Sarraut  said — 
"  he  gave  his  full  and  unreserved  adherence  to  this  resolution.  In 
giving  this  unreserved  adherence,  he  liked  to  remember  that  France 
was  the  oldest  ally,  perhaps,  of  Russia,  and  in  this  respect  it  was 
with  a  particular  feeling  of  gratification  that  he  would  state  that 
he  had  listened  with  great  pleasure  to  the  exchange  of  views  that 
had  just  taken  place  before  the  Committee  between  the  representa- 
tives of  the  United  States  and  Japan.  The  French  Government 
would  hear  with  the  same  feelings  the  formal  assurance  given  by 
Baron  Shidehara  of  the  intention  of  the  Japanese  Government  con- 
cerning Siberia;  of  Japan's  desire  to  withdraw  her  troops  from 
Russia  as  soon  as  possible;  of  its  firm  intention  not  to  interfere  in 
the  domestic  affairs  of  Russia ;  and  of  its  firm  purpose  to  respect  the 
integrity  of  Russia. 

"  France  had  full  trust  in  Japan,  who  had  always  proved  a  loyal 
and  trustworthy  friend.  It  was  quite  certain  that  this  assurance 
would  be  carried  out.  France  accepted  this  with  all  the  more 
pleasure  because  it  was  exactly  the  program  which  the  French 
Government  had  adopted  in  1918  and  which  led  them  to  interfere 
in  Siberia  under  the  same  conditions  as  those  set  forth  so  exactly 
by  the  Secretary  of  State  of  the  United  States.  At  this  point  he 
could  not  fail  to  restate  quite  clearly  France's  intention,  like  that 
of  her  Allies,  to  respect  the  integrity  of  Russia,  and  to  have  the 
integrity  of  Russia  respected,  and  not  to  interfere  in  her  internal 
policy. 

"  France  remained  faithful  to  the  friendship  of  Russia,  which 
she  could  not  forget.  She  entertained  feelings  of  gratitude  to  the 
Russian  people,  as  she  did  to  her  other  Allies.  Russia  had  been 
her  friend  of  the  first  hour,  and  she  was  loyal;  she  had  stuck  to 
her  word  until  the  Russian  Government  was  betrayed  in  the  way 
with  which  those  present  were  familiar.  France  also  remained 
faithful  to  the  hope  that  the  day  would  come  when  through  the 
channel  of  a  normal  and  regular  government  great  Russia  would 
be  able  to  go  ahead  and  fulfill  her  destiny.  Then  it  would  be 
good  for  her  to  find  unimpaired  the  patrimony  that  had  been  kept 
for  her  by  the  honesty  and  loyalty  of  her  allies.  It  was  with  this 
feeling  that  the  French  Delegation  with  great  pleasure  concurred 


412  CHINA  AT  THE  CONFERENCE 

in  the  adoption  of  the  present  resolution  "  [that  the  American  and 
Japanese  statements  be  spread  upon  the  minutes  of  the  Conference] . 


APPENDIX  V:  CHINA'S"  DELEGATION 

Delegates. 

Mr.  S'ao-Ke  Alfred  Sze,  Envoy  Extraordinary  and  Minister  Pleni- 
potentiary to  the  United  States  of  America. 

Mr.  V.  K.  Wellington  Koo,  Envoy  Extraordinary  and  Minister 
Plenipotentiary  to  the  Court  of  St.  James. 

Dr.  Chung-Hui  Wang,  Chief  Justice  of  the  Supreme  Court  of 
the  Eepublic  of  China. 

Mr.  Chao-Chu  Wu  (appointed  but  did  not  go  to  Washington). 
Superior  Advisers. 

Mr.  Yuho  M.  T.  Liang,  Ex-Minister  for  Foreign  Affairs. 

Mr.  Tzu-Chi  Chow,  Ex-Minister  of  Finance. 
Secretary  General. 

Mr.   Philip  K.   C.  Tyau,  Envoy  Extraordinary  and   Minister 
Plenipotentiary  to  Cuba. 
Assistant  Secretary  General. 

Mr.  Yun-Siang  Tsao,  Counselor  of  the  Ministry  of  Foreign 
Affairs. 
Advisers. 

Vice  Admiral  Ting-Kan  Tsai. 

Lieutenant  General  Fu  Hwang. 

Mr.  Chia-Jui  Wang,  Counselor  of  the  Government  Bureau  of 
Printing. 

Mr.  Wen-Kan  Lo,  Vice  President  of  the  Commission  on  Codi- 
fication of  Laws. 

Dr.  Hawkling  Yen,  Adviser  to  the  Ministry  of  Foreign  Affairs. 
Counselors.  Counselors. 

Mr.  Yen  Liu.  Mr.  Shih-Tsin  Wen. 

Mr.  Chung- Yu  Wang.  Mr.  Tien-Chi  Yang, 

Mr.  Mun-Yew  Chung.  Mr.  Kwai  Yung. 

Mr.  Tung-Fan  Hsu.  Mr.  Pan-Chen  King. 

Mr.  Nan-Ju  Wu.  Mr.  En-Liang  Tang. 

Mr.  Ta-Chen  Wang.  Mr.  Shu-Jen  Hsu. 


APPENDICES 


413 


Technical  Delegates. 

Mr.  Yu-Chuan  Chang. 

Mr.  Hon-Nieng  Wang. 

Mr.  Yang-Pin  Wang. 

Mr.  Ching-Ming  Li. 

Mr.  Shih-Yi  Chia. 

Lieutenant  General  Chung- Yo 
Lee. 

Bear  Admiral  King-Hsi  Li. 

Mr.  Fatting  Tinsik  Cheng. 

Mr.  Tseu-Ying  Teng. 

Mr.  Chih-Chang  Wang. 

Mr.  Tien  Chow. 

Dr.  Te-Ching  Yen. 

Mr.  T.  T.  Tsang  Ou. 

Dr.  Koung-Ou  Houx. 

Mr.  Kwang-Yi  Char. 

Mr.  Tinph  W.  Tu. 

Mr.  Lun  Chan. 
Directors  of  Departments. 

Mr.  Pau-Yien  Wu. 

Mr.  Chao-Hsinug  Zee. 

Mr.  Tzon-Fah  Hwang. 
Assistant  Director  op 
Departments. 

Dr.  Ung-Yu  Yen. 
Secretaries. 

Mr.  Fu-Yun  Chang. 

Mr.  Shou-Mo  Chang. 

Mr.  Ziang-Ling  Chang. 

Mr.  Chuan  Chao. 

Commander  Tao  Yuan  Chen. 

Mr.  Linson  Dzau. 

Dr.  Chi-Tai  Hoo. 

Mr.  Tsung-Ling  Huang. 

Dr.  Feng-Hua  Huang. 

Dr.  Thomas  King. 

Mr.  Wunsz  King. 


Secretaries. 

Mr.  Telly  Howard  Koo. 

Mr.  Gilford  T.  Kuan. 

Mr.  Yun-Kuan  Kuo. 

Mr.  Yung-Chung  Kwong. 

Mr.  Kuang-Chao  Lee. 

Mr.  Wei-Shiu  Lao. 

Dr.  Tien-Lu  Li. 

Mr.  Pao-Heng  Lin. 

Mr.  Sy-Tchang  Liou. 

Mr.  Dakium  K.  Liou. 

Mr.  Tsiun  Lou. 

Mr.  Pao  Shen  Shen. 

Mr.  Tsu-Lieh  Sun. 

Mr.  Kwang  Schu. 

Mr.  Chiang-Ming  Sung. 

Mr.  I.  Hsuan  Si. 

Dr.  T.  Philip  Sze. 

Mr.  Hsia-Chang  Szeping. 

Mr.  Ching-Yi  Tang. 

Dr.  Ven-Four  Tchou. 

Mr.  Che-Tsien  Tchou. 

Dr.  M.  T.  Z.  Tyau. 

Mr.  Hong-Nien  Tong. 

Mr.  Yoeh-Liang  Tong. 

Dr.  Wen-Pin  Wei. 

Mr.  Tsen-Ngao  Yang. 

Mr.  Yung-Ching  Yang. 

Mr.  De-Djuen  Yu. 
Attaches. 

Brevet  Brigadier  General  Ting- 
Chia  Chen. 

Mr.  Hsing-Hai  Chang. 

Mr.  Hung-Yeh  Chao, 

Mr.  Yen-Shu  Che. 

Mr.  Tien-Tsin  Chen. 

Mr.  Franklin  Chiu. 

Mr.  Tsu-hung  Chu. 


414 


CHINA  AT  THE  CONFERENCE 


Attaches. 

Mr.  Pao-Tien  Hsieh. 

Mr.  Mour  Hsu. 

Mr.  Teh-peh  Kung. 

Mr.  Shih-Sung  Li. 

Mr.  Yeh  Li. 

Mr.  Min-Chao  Liu. 

Mr.  Yuhu  C.  Liu. 

Mr.  Kwang-Lai  Lou. 

Mr.  Mau-Dei  Lu. 

Mr.  Jones  Lu. 

Mr.  Keesing  Sen. 

Mr.  Dzu-Kun  Shen. 

Mr.  Chao-Wei  Sze. 

Mr.  Nai-Wen  Tao. 

Mr.  Teh  Kwang  Tsen. 

Mr.  Yuan-Mow  Wang. 

Mr.  Yung-hsi  Wei. 

Mr.  Seu-Mei  Woo. 

Mr.  Ge-Zay  Wood. 

Mr.  Chao-Yung  Wu. 

Mr.  S"hen-Kun  Wu. 

Mr.  Chao-Ying  T.  C.  Yeh. 

Mr.  Kih-Sung  Yen. 


Attaches. 

Mr.  Kimpson  Yu. 

Mr.  Chun-Shieh  Yu. 

Mr.  Robert  Yu,  jr. 
Translators. 

Mr.  Chi  Chow. 

Mr.  Ying  Kao. 

Mr.  Che-Yee  Lee. 

Mr.  Chia-Yu  Liu. 

Mr.  Gin-Ding  Shen. 

Mr.  Ching-Shang  Tyau. 
Clerks. 

Mr.  Tsong-Gee  Chu. 

Mr.  Tsung-Len  Li. 

Mr.  Chi-Seng  Mong. 

Mr.  Yu-Lean  Shang. 

Mr.  Shih-Yuan  Yu. 

Mr.  Hing-Ching  Chu. 

Mr.  Shao-Ying  Fan. 

Mr.  Vun-Kang  Hang. 

Mr.  Chun-Fang  Lee. 

Mr.  Tsen-Tung  Lieu. 

Mr.  Hsi-Chi  Wang. 

Mr.  Tso-Yung  Tyau. 


INDEX 


Administrative  Integrity,  41.  See 
Territorial  and  Administrative 
Integrity. 

Agenda,  25. 

Agreements  of  May  25,  1915.  See 
Twenty-One  Demands,  Manchu- 
ria, Spheres  of  Interests. 

Anglo-Japanese  Alliance,  344  ff . 

Armed  Forces  in  China,  proposed 
resolution  by  the  Powers  regard- 
ing, 108;  Chinese  statement,  109; 
Sir  Robert  Borden's  statement, 
110;  resolution  adopted,  112. 

Arms  Embargo,  242 ff.;  draft  reso- 
lution, 244;  amended  resolution, 
246;  resolution  withdrawn,  247. 

Baker,  John  E.,  statement  of,  re- 
garding Shantung  settlement,  329; 
value  of  services  of,  332,  note. 

Board  of  Reference,  210,  215. 

Borden,  Sir  Robert,  statement  re- 
garding armed  forces  in  China, 
110. 

Cables,  submarine,  at  Tsingtao,  308 
railway,  309  ff.;  valuation  of,  310 
joint  railway  commission,  313 
payment  for,  314. 

Chefoo-Weihsien  Railway,  325. 

Chief  Accountant,  Shantung  Rail- 
way, 315;  Chinese  Chief  Ac- 
countant, 324. 

China,  invitation  to,  and  acceptance 
by,  9;  delegates  of,  11,  and  appen- 
dix; handicapped  by  her  weak- 
ness,   15 ;    programme    of,    27  ff . ; 


fears  of,  30 ff.;  Ten  Points,  32 ff.; 
defined,  39;  sovereignty  and  ad- 
ministrative integrity,  45 ff.;  neu- 
tral rights  of,  53. 

Chinese  Eastern  Railway,  226  ff.;  re- 
port of  Technical  Committee, 
227 ff.;  views  of  Dr.  Hawkling 
Yen,  229 ;  resolutions  adopted,  230. 

Claims  in  Shantung,  325. 

Commitments,  China's,  261  ff.; 
Chinese  proposals,  261 ;  draft  reso- 
lution, 264;  resolution  adopted, 
271 ;  without  time  limits,  273 ;  con- 
struction of,  274. 

Committees  of  the  Whole,  19. 

Communiques,  to  the  press,  20,  23. 

Conference,  preliminary  correspon- 
dence and  invitations  to,  3  ff.;  one 
of  sovereign  Powers,  2;  delegates 
to,  11;  plenary  sessions,  19;  com- 
mittees of  the  whole,  19;  commu- 
niques, 20. 

Consortium,  International  Banking 
and  Special  Interests,  194  ff. ;  and 
spheres  of  interest,  176;  and  the 
Open  Door,  213;  and  Japanese 
rights  in  Manchuria,  258;  char- 
acter of,  268. 

Convention,  secretariat,  21 ;  chair- 
man, 22. 

Conversations.    See  Shantung. 

Customs  Administration  at  Tsing- 
tao, 302. 

Customs,  Maritime,  maintenance  of 
existing  administrative  s>'8tcm,  94, 
104. 

415 


416 


INDEX 


Delegates,  names  of,  II. 

Electric  Light,  Tsingtao,  304. 

Electrical  Communications.  See 
Wireless. 

Embargo.    See  Arms  Embargo. 

Entity,  Administrative,  defined,  50 
note. 

Equality  of  Powers,  1  S.,  47. 

Extraterritoriality,  Chinese  state- 
ment regarding,  114;  resolution 
adopted,  118. 

Finland,  status  of  regarding  Chinese 

tariff  treaty,  83. 
Forestry  in  Shantung,  325. 
Four  Power  Pact,  21. 

Garrett,  Honorable  John  W.,  Secre- 
tary-General, 22. 

Geddes,  Sir  Auckland,  resolution  of, 
regarding  Consortium  and  the 
Open  Door,  213;  resolution  of,  re- 
garding Chinese  Railway,  223. 

George,  Lloyd,  remarks  in  British 
House  of  Commons,  July  11,  1921, 
4  (footnote). 

Good  Offices.    See  Shantung. 

Harding,  President,  interview  with 
Mr.  Sze,  322. 

Hongkong.  187. 

Hughes,  Hon.  Charles  Evans,  Chair- 
man of  convention  and  of  com- 
mittees, 22 ;  opening  address,  23. 

Inter-Power  Agreements,  235  ff . ; 
statement  of  Dr.  Koo,  236;  resolu- 
tion adopted,  240. 

Invitations,  to  conference,  4ff. 

Japan,  ambitions  of,  15  ff.;  hesitancy 
in  accepting  invitation  to  con- 
ference, 4ff. 

Joint  Railway  Commission,  313. 


Koo,  Dr.  V.  K.  Wellington,  defines 
China,  39 ;  statement  of,  regarding 
Chinese  tariff  wishes,  55  ff . ;  re- 
marks on  tariff  in  sub-committee, 
60  ff.,  75;  statement  of,  as  to  de- 
posit of  customs  receipts,  97;  as 
to  maintenance  of  existing  cus- 
toms administration,  104;  state- 
ment of,  regarding  Chinese  East- 
em  Railway,  233;  statement  of, 
regarding  Inter-Powers  Agree- 
ments, 235;  statement  of,  regard- 
ing China's  commitments,  262; 
statement  regarding  Leased  Areas, 
181;  statement  regarding  Kow- 
loon,  188;  statement  regarding 
Manchuria,  198, 199 ;  statement  of, 
regarding  stationing  of  troops,  153. 

Kashgar,  wireless  station  at,  160. 

Kowloon,  186,  statement  of  Dr.  Koo 
concerning,  188. 

Kiaochow.    See  Shantung. 

Kwangchow-wan,  statement  of  M. 
Viviani  regarding  surrender  of, 
183;  statement  of  M.  Sarraut,  192; 
wireless  at,  160. 

Kwantimg.  See  Liaotung  Penin- 
sula. 

Land  Frontier  Duties,  69  ff . 

Lansing-Ishii  Agreement,  193  ff. 

Laimdry,  Tsingtao,  304. 

Leased  Areas,  181  ff.;  Dr.  Koo's 
statement,  181 ;  Kwangchow-wan, 
183,  192;  Kiaochow,  185  (see  also 
Shantung) ;  Kwantung,  185,  190 ; 
Kowloon,  186;  Weihaiwei,  188, 
191;  foreign  post  offices  in,  134. 

Liaotung  Peninsula,  185,  190. 

Light  Railways,  Shantung,  323. 

Likin,  58. 

Li-Lobanoff  Treaty,  262. 

Lodge,  Senator,  statement  in  United 
States  Senate  regarding  Shantung, 
281. 


INDEX 


417 


Luxemburg,  Grand  Duchy  of, 
status  of,  regarding  Chinese  tariff 
treaty,  83. 

Manchuria,  and  the  Consortium, 
194,  197;  Dr.  Koo's  statement,  198, 
199. 

Mines,  Shantung,  307. 

Mining  Code,  China's,  202. 

Most  Favored  Nation  Clause  and 
Chinese  tariff,  89,  92. 

Neutrahty,  of  China,  53. 
Non-Treaty    Powers,    and    Chinese 
tariff,  84,  103. 

Open  Door,  205  ff.;  definition  of, 
206  ff.;  consortium  and,  213,  Board 
of  Reference,  215;  Chinese  state- 
ment, 218,  resolutions  adopted, 
219;  Chinese  Railways  and,  222  ff. 

Pacific  and  Far  Eastern  Questions, 
need  for  discussion  of,  14  ff,;  com- 
mittee of  whole  for  discussion  of, 
19. 

Plenary  Sessions,  of  the  conference, 
19. 

Poland,  status  of,  regarding  Chinese 
tariff  treaty,  83. 

PoUce,  foreign,  in  China.  See 
Troojw. 

Poet  Offices,  foreign,  in  China  state- 
ment by  Mr.  Sze,  121  ff.;  discus- 
sion of,  129;  resolutions  reported, 
129;  Japanese  statement,  132; 
Chinese  statement,  133;  in  leased 
areas  and  railway  zones,  134; 
Jap&neee,  in  Shantung.  325. 

Radio.    See  Wireless. 
Railway  Guards,  155. 
Railway  Zones,  foreign  post  offices 
in,  134;  wireless  in,  161. 


Railways,  Chinese,  unification  of, 
222;  resolution  of  Sir  Auckland 
Geddes  regarding,  223. 

Roads,  Tsingtao,  304. 

Root,  Senator,  resolutions  of,  40  ff. 

Root  Resolutions,  40  ff. 

Russia,  status  of,  regarding  Chinese 
tariff  treaty,  82. 

Salt,  Shantung,  306. 

Sarraut,  M.,  statement  regarding 
Kwangchow-wan,  192. 

Secretar>'-General,  21. 

Shanghai,  French  wireless  station  at, 
160. 

Shantung,  277 ff.;  reasons  for  Con- 
versations, 280 ff.;  statements  of 
Senators  Lodge  and  Underwood, 
281 ;  question  as  to  scope  of  good 
offices,  283  note;  scope  of  Conver- 
sations, 284 ;  status  of  question  re- 
viewed, 285;  Treaty  of  Versailles, 
289 ;  correspondence  between 
China  and  Japan,  291  ff.;  reasons 
why  other  Powers  unwilling  to 
have  Shantung  before  the  Con- 
ference, 297;  Kiaochow  to  be  re- 
stored, 301 ;  customs  administra- 
tion, 302;  pubhc  properties,  303; 
vested  rights,  306;  salt,  306; 
mines,  307;  withdrawal  of  troops, 
308;  wireless,  308;  cables,  308; 
Shantung  Railway,  309 ff.;  agree- 
ments reached,  323;  understand- 
ings recorded,  323  ff.;  joint  com- 
mission, 326;  merits  of  settlement, 
327;  statement  of  John  E.  Baker, 
329. 

Shantung  Railway,  309  ff. 

Shantung  Treaty,  21. 

Shidehara,  Baron,  statement  of,  re- 
garding China's  natural  resources, 
200;  Mr.  Sze's  reply,  201. 

Siberia,  Japan's  actions  in,  17,  349  ff. 


418 


INDEX 


Sovereignty,  defined  and  discussed 
in  relation  to  territorial  and  ad- 
ministrative  integrity,  45  ff. 

Special  Interests  in  China,  193 ff.; 
the  Consortium  and,  194  ff.;  Man- 
churia, 198  f.;  Shidehara's  state- 
ment, 200;  Mr.  Sze's  reply,  201. 

Spheres  of  Influence,  resolution 
adopted  regarding,  273. 

Spheres  of  Interest,  Dr.  Wang's 
statement,  174 ff.;  status  of,  175; 
Dr.  Koo's  statement,  177;  resolu- 
tion adopted,  179.  See  "Open 
Door." 

Stockyard,  Tsingtao,  304. 

Subcommittee,  20. 

Sze,  Minister  S.  K.  Alfred,  state- 
ment of,  regarding  Chinese  Rail- 
ways, 222,  224;  statement  of,  to 
Conference  regarding  Shantung 
Conversations,  278;  interview  with 
President  Harding,  322 ;  statement 
regarding  wireless  installations  in 
China,  157, 166,  173;  statement  by, 
regarding  foreign  troops  and  police 
in  China,  136  ff.;  rejoinder  to  Jap- 
anese statement,  143;  statement 
by,  as  to  general  right  to  station 
troops,  155 ;  reply  to  Baron  Shide- 
hara's statement  regarding  China's 
natural  resources,  201;  reply  to 
Hughes  opening  address,  24 ;  intro- 
duction of  China's  Ten  Points,  33 ; 
statement  by,  regarding  foreign 
post  offices  in  China.  121  ff. 

Tariff,  Chinese,  deposit  of  receipts 
from,  95;  report  of  Senator  Un- 
derwood to  plenary  session,  98 ff.; 
Chinese  statements,  103 ff.;  draft, 
of  treaty,  86 ;  most  favored  nation 
clause,  89,  92;  China's  power  to 
denounce  tariff  treaties,  92;  main- 
tenance of  existing  system  of  ad- 
ministration, 94 ;  statement  by  Dr. 


Koo,  75;  report  from  drafting 
committee,  80 ;  Russia's  status,  82 ; 
Luxemburg's  status,  83;  Finland 
and  Poland,  83 ;  non-treaty  powers, 
84,  statement,  55;  subcommittee 
discussions,  50 ff.;  Japan  objects 
to  7i  per  cent,  63 ;  Japanese  state- 
ment, 64 ;  draft  agreement,  67,  land 
frontier  duties,  69  ff.;  statement  by 
Underwood,  72. 

Telephone,  Tsingtao,  304. 

Ten  Points  of  China,  32  ff.,  43. 

Territorial  and  Administrative  In- 
tegrity, defined  and  discussed,  45  ff. 

Traffic  Manager,  Shantung  Railway, 
315,  staff  of,  324, 

Treaties  and  Agreements  of  May 
25,  1915.  See  Twenty-One  De- 
mands, 

Treasury  Notes,  in  payment  for 
Shantung  Railway,  323,  324. 

Troops,  foreign,  in  China,  Chinese 
statement,  136  ff . ;  Japanese  state- 
ment, 139;  police  troops,  142; 
Chinese  rejoinder,  143;  Chinese 
argument,  144;  Japanese  reply, 
150;  commission  of  inquiry  pro- 
posed, 151;  Chinese  objections  to, 
152;  resolution  adopted,  153; 
Chinese  statement,  154. 

Troops.  Japanese,  in  Shantung,  with- 
drawal of,  308. 

Tsingtao.    See  Shantung. 

Twenty-One  Demands,  3,  16,  42; 
249  ff.;  statement  of  Dr.  Wang, 
249;  Japanese  statement,  250; 
reply  by  Dr.  Wang,  253 ;  statement 
of  the  United  States,  256. 

Unanimity,  required,  2. 

Underwood,  Senator,  remarks  re- 
garding Chinese  tariff,  59,  72,  79; 
statement  regarding  China's  power 
to  denounce  tariff  treaties,  92;  re- 
port   of,   upon   Chinese   tariff   to 


TNDEX 


419 


plenary  seasion,  98  ff.;  statement 
of,  regarding  wireless,  169;  state- 
ments in  U.  S.  Senate,  107  note; 
statement  of,  in  United  States 
Senate  regarding  Shantung,  281. 
Unification  of  Chinese  Railways, 
222  ff. 

Viviani,    M.,    statement    regarding 

Kwangchow-wan,  183. 
Viviani  Wireless  Resolution,  164. 

Walsh,  Senator,  resolution  of,  in 
United  States  Senate,  280. 

Wang,  Dr.,  presentation  of  Twenty- 
One  Demands,  249,  reply  to  Jap- 
anese statement,  253 ;  statement  re- 
garding extraterritoriality,  114  fif.; 
statement  regarding  Spheres  of  In- 
terest, 174. 


Water-works,  Tsingtao,  304. 

Weihaiwei,    188,    191. 

Wireless,  withdrawal  of  in  Shantung, 
308. 

Wireless  Installations,  in  China. 
157  ff.;  Chinese  statement,  157; 
draft  resolution  by  Mr.  Root,  159 ; 
at  Kashgar,  160;  Kwangchow-wan, 
160;  resolution  of  December  7, 
162;  Viviani  resolution,  164; 
Chinese  statement,  166;  revised 
Root  resolution,  168;  statement  by 
Underwood,  169 ;  resolution  of  De- 
cember 7,  re-adopted,  172;  state- 
ment by  Mr.  Sze,  173. 

Yen,  Dr.  Hawkling,  views  of,  re- 
garding Chinese  Eastern  Railway, 
229. 


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